The "Aggregate Short Volume Ratio" of 60% for Regencell Bioscience Holdings Limited (RGC) indicates that 60% of the total trading volume for the stock, across the venues Fintel tracks, consisted of short sales during a specific period. This metric is calculated by dividing the aggregate short volume by the aggregate total volume.1
Here's a breakdown of what that means:
- Short Volume: This refers to the total number of shares sold short during a trading period. A short sale occurs when an investor borrows shares and sells them, hoping to buy them back later at a lower price to profit from the decline.2
- Aggregate: Fintel combines short volume data from various sources, including FINRA (for off-exchange trades), CBOE, and PSX/BX exchanges, to arrive at an "Aggregate Short Volume." It's important to note that this aggregate figure represents the venues Fintel tracks and may not encompass all trading venues.1
- Ratio: A 60% ratio means that for every 100 shares traded, 60 of them were short sales. This is a relatively high percentage, suggesting significant bearish sentiment and active short-selling interest in RGC shares.2
A consistently high short volume ratio, such as 60%, can signal that a substantial portion of market participants anticipate a price decline for RGC. While short volume is a daily flow metric and differs from short interest (which represents the total number of open short positions), sustained high short volume can contribute to an increase in the overall short interest for a stock.2 Investors often monitor this metric as it can sometimes precede increased volatility or even potential short squeeze scenarios if the stock price moves unexpectedly against short sellers.1
You can find daily short volume and short volume ratios for RGC, along with other short interest data, on Fintel's RGC short interest page.2
