Correlation Between Regencell Bioscience and Eagle Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Regencell Bioscience and Eagle Pharmaceuticals 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 Eagle Pharmaceuticals 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 Eagle Pharmaceuticals, you can compare the effects of market volatilities on Regencell Bioscience and Eagle Pharmaceuticals 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 Eagle Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regencell Bioscience and Eagle Pharmaceuticals.
Diversification Opportunities for Regencell Bioscience and Eagle Pharmaceuticals
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Regencell and Eagle is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Regencell Bioscience Holdings and Eagle Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Pharmaceuticals 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 Eagle Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Pharmaceuticals has no effect on the direction of Regencell Bioscience i.e., Regencell Bioscience and Eagle Pharmaceuticals go up and down completely randomly.
Pair Corralation between Regencell Bioscience and Eagle Pharmaceuticals
Considering the 90-day investment horizon Regencell Bioscience Holdings is expected to generate 3.59 times more return on investment than Eagle Pharmaceuticals. However, Regencell Bioscience is 3.59 times more volatile than Eagle Pharmaceuticals. It trades about 0.02 of its potential returns per unit of risk. Eagle Pharmaceuticals is currently generating about -0.1 per unit of risk. If you would invest 2,933 in Regencell Bioscience Holdings on August 28, 2024 and sell it today you would lose (2,342) from holding Regencell Bioscience Holdings or give up 79.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.25% |
| Values | Daily Returns |
Regencell Bioscience Holdings vs. Eagle Pharmaceuticals
Performance |
| Timeline |
| Regencell Bioscience |
| Eagle Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Regencell Bioscience and Eagle Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regencell Bioscience and Eagle Pharmaceuticals
The main advantage of trading using opposite Regencell Bioscience and Eagle Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regencell Bioscience position performs unexpectedly, Eagle Pharmaceuticals 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 Eagle Pharmaceuticals will offset losses from the drop in Eagle Pharmaceuticals' long position.| Regencell Bioscience vs. Delta 9 Cannabis | Regencell Bioscience vs. City View Green | Regencell Bioscience vs. Benchmark Botanics | Regencell Bioscience vs. Speakeasy Cannabis Club |
| Eagle Pharmaceuticals vs. ANI Pharmaceuticals | Eagle Pharmaceuticals vs. Phibro Animal Health | Eagle Pharmaceuticals vs. Prestige Brand Holdings | Eagle Pharmaceuticals vs. Collegium Pharmaceutical |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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