Correlation Between Regencell Bioscience and ServisFirst Bancshares

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

Diversification Opportunities for Regencell Bioscience and ServisFirst Bancshares

-0.3

Correlation Coefficient

Regencell Bioscience  ServisFirst Bancshares

Very good diversification

The 3 months correlation between Regencell and ServisFirst is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Regencell Bioscience Holdings and ServisFirst Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ServisFirst Bancshares 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 ServisFirst Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ServisFirst Bancshares has no effect on the direction of Regencell Bioscience i.e., Regencell Bioscience and ServisFirst Bancshares go up and down completely randomly.

Pair Corralation between Regencell Bioscience and ServisFirst Bancshares

Considering the 90-day investment horizon Regencell Bioscience Holdings is expected to generate 26.07 times more return on investment than ServisFirst Bancshares. However, Regencell Bioscience is 26.07 times more volatile than ServisFirst Bancshares. It trades about 0.12 of its potential returns per unit of risk. ServisFirst Bancshares is currently generating about 0.01 per unit of risk. If you would invest  822.00  in Regencell Bioscience Holdings on May 13, 2025 and sell it today you would earn a total of  530.00  from holding Regencell Bioscience Holdings or generate 64.48% 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.  ServisFirst Bancshares

Regencell Bioscience

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Regencell Bioscience Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, Regencell Bioscience exhibited solid returns over the last few months and may actually be approaching a breakup point.

ServisFirst Bancshares

Risk-Adjusted Performance

Weakest

Over the last 90 days ServisFirst Bancshares has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental drivers, ServisFirst Bancshares is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Regencell Bioscience and ServisFirst Bancshares

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

The idea behind Regencell Bioscience Holdings and ServisFirst Bancshares 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.