Correlation Between Biofrontera and Regencell Bioscience
Can any of the company-specific risk be diversified away by investing in both Biofrontera and Regencell Bioscience 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 Biofrontera and Regencell Bioscience into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biofrontera and Regencell Bioscience Holdings, you can compare the effects of market volatilities on Biofrontera and Regencell Bioscience 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 Biofrontera with a short position of Regencell Bioscience. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biofrontera and Regencell Bioscience.
Diversification Opportunities for Biofrontera and Regencell Bioscience
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Biofrontera and Regencell is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Biofrontera and Regencell Bioscience Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regencell Bioscience and Biofrontera 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 Biofrontera are associated (or correlated) with Regencell Bioscience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regencell Bioscience has no effect on the direction of Biofrontera i.e., Biofrontera and Regencell Bioscience go up and down completely randomly.
Pair Corralation between Biofrontera and Regencell Bioscience
Given the investment horizon of 90 days Biofrontera is expected to generate 1.3 times more return on investment than Regencell Bioscience. However, Biofrontera is 1.3 times more volatile than Regencell Bioscience Holdings. It trades about 0.06 of its potential returns per unit of risk. Regencell Bioscience Holdings is currently generating about 0.02 per unit of risk. If you would invest 89.00 in Biofrontera on August 28, 2024 and sell it today you would earn a total of 3.00 from holding Biofrontera or generate 3.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biofrontera vs. Regencell Bioscience Holdings
Performance |
| Timeline |
| Biofrontera |
| Regencell Bioscience |
Biofrontera and Regencell Bioscience Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biofrontera and Regencell Bioscience
The main advantage of trading using opposite Biofrontera and Regencell Bioscience positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biofrontera position performs unexpectedly, Regencell Bioscience 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 Regencell Bioscience will offset losses from the drop in Regencell Bioscience's long position.| Biofrontera vs. Shuttle Pharmaceuticals | Biofrontera vs. Akanda Corp | Biofrontera vs. China Pharma Holdings | Biofrontera vs. Sunshine Biopharma Warrant |
| Regencell Bioscience vs. Delta 9 Cannabis | Regencell Bioscience vs. City View Green | Regencell Bioscience vs. Benchmark Botanics | Regencell Bioscience vs. Speakeasy Cannabis Club |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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