Correlation Between Regencell Bioscience and Amphastar

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

Diversification Opportunities for Regencell Bioscience and Amphastar

-0.33

Correlation Coefficient

Regencell Bioscience  Amphastar

Very good diversification

The 3 months correlation between Regencell and Amphastar is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Regencell Bioscience Holdings and Amphastar P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amphastar P 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 Amphastar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amphastar P has no effect on the direction of Regencell Bioscience i.e., Regencell Bioscience and Amphastar go up and down completely randomly.

Pair Corralation between Regencell Bioscience and Amphastar

Considering the 90-day investment horizon Regencell Bioscience Holdings is expected to generate 14.95 times more return on investment than Amphastar. However, Regencell Bioscience is 14.95 times more volatile than Amphastar P. It trades about 0.34 of its potential returns per unit of risk. Amphastar P is currently generating about -0.03 per unit of risk. If you would invest  405.00  in Regencell Bioscience Holdings on March 3, 2025 and sell it today you would earn a total of  87,295  from holding Regencell Bioscience Holdings or generate 21554.32% return on investment over 90 days.

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

Regencell Bioscience Holdings  vs.  Amphastar P

Regencell Bioscience

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Regencell Bioscience Holdings are ranked lower than 27 (%) 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.

Amphastar P

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amphastar P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Amphastar is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Regencell Bioscience and Amphastar

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

The idea behind Regencell Bioscience Holdings and Amphastar P 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.