Correlation Between Regencell Bioscience and Kamada

Can any of the company-specific risk be diversified away by investing in both Regencell Bioscience and Kamada 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 Kamada 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 Kamada, you can compare the effects of market volatilities on Regencell Bioscience and Kamada 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 Kamada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regencell Bioscience and Kamada.

Diversification Opportunities for Regencell Bioscience and Kamada

0.0

Correlation Coefficient

Regencell Bioscience  Kamada

Pay attention - limited upside

The 3 months correlation between Regencell and Kamada is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Regencell Bioscience Holdings and Kamada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamada 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 Kamada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kamada has no effect on the direction of Regencell Bioscience i.e., Regencell Bioscience and Kamada go up and down completely randomly.

Pair Corralation between Regencell Bioscience and Kamada

Considering the 90-day investment horizon Regencell Bioscience Holdings is expected to generate 10.32 times more return on investment than Kamada. However, Regencell Bioscience is 10.32 times more volatile than Kamada. It trades about 0.17 of its potential returns per unit of risk. Kamada is currently generating about 0.09 per unit of risk. If you would invest  482.00  in Regencell Bioscience Holdings on December 29, 2024 and sell it today you would earn a total of  2,085  from holding Regencell Bioscience Holdings or generate 432.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Regencell Bioscience Holdings  vs.  Kamada

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 13 (%) 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.

Kamada

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kamada are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, Kamada sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Regencell Bioscience and Kamada

The main advantage of trading using opposite Regencell Bioscience and Kamada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regencell Bioscience position performs unexpectedly, Kamada 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 Kamada will offset losses from the drop in Kamada's long position.

The idea behind Regencell Bioscience Holdings and Kamada 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.

Check out your portfolio center.

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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.