Correlation Between Regencell Bioscience and Agile Thrpe

Can any of the company-specific risk be diversified away by investing in both Regencell Bioscience and Agile Thrpe at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Regencell Bioscience and Agile Thrpe into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Regencell Bioscience Holdings and Agile Thrpe, you can compare the effects of market volatilities on Regencell Bioscience and Agile Thrpe and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Regencell Bioscience with a short position of Agile Thrpe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regencell Bioscience and Agile Thrpe.

Diversification Opportunities for Regencell Bioscience and Agile Thrpe

0.0

Correlation Coefficient

Regencell Bioscience  Agile Thrpe

Pay attention - limited upside

The 3 months correlation between Regencell and Agile is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Regencell Bioscience Holdings and Agile Thrpe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agile Thrpe and Regencell Bioscience is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Regencell Bioscience Holdings are associated (or correlated) with Agile Thrpe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agile Thrpe has no effect on the direction of Regencell Bioscience i.e., Regencell Bioscience and Agile Thrpe go up and down completely randomly.

Pair Corralation between Regencell Bioscience and Agile Thrpe

If you would invest  482.00  in Regencell Bioscience Holdings on December 29, 2024 and sell it today you would earn a total of  3,005  from holding Regencell Bioscience Holdings or generate 623.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Regencell Bioscience Holdings  vs.  Agile Thrpe

Regencell Bioscience

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Regencell Bioscience Holdings are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile technical and fundamental indicators, Regencell Bioscience exhibited solid returns over the last few months and may actually be approaching a breakup point.

Agile Thrpe

Risk-Adjusted Performance

Very Weak

Over the last 90 days Agile Thrpe has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Agile Thrpe is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Regencell Bioscience and Agile Thrpe

The main advantage of trading using opposite Regencell Bioscience and Agile Thrpe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regencell Bioscience position performs unexpectedly, Agile Thrpe can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Agile Thrpe will offset losses from the drop in Agile Thrpe's long position.

The idea behind Regencell Bioscience Holdings and Agile Thrpe pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.