Correlation Between Durect and MiMedx
Can any of the company-specific risk be diversified away by investing in both Durect and MiMedx 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 Durect and MiMedx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Durect and MiMedx Group, you can compare the effects of market volatilities on Durect and MiMedx 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 Durect with a short position of MiMedx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Durect and MiMedx.
Diversification Opportunities for Durect and MiMedx
Pay attention - limited upside
The 3 months correlation between Durect and MiMedx is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Durect and MiMedx Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MiMedx Group and Durect 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 Durect are associated (or correlated) with MiMedx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MiMedx Group has no effect on the direction of Durect i.e., Durect and MiMedx go up and down completely randomly.
Pair Corralation between Durect and MiMedx
Given the investment horizon of 90 days Durect is expected to generate 2.01 times more return on investment than MiMedx. However, Durect is 2.01 times more volatile than MiMedx Group. It trades about 0.18 of its potential returns per unit of risk. MiMedx Group is currently generating about -0.19 per unit of risk. If you would invest 75.00 in Durect on November 1, 2024 and sell it today you would earn a total of 10.00 from holding Durect or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Durect vs. MiMedx Group
Performance |
| Timeline |
| Durect |
| MiMedx Group |
Durect and MiMedx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Durect and MiMedx
The main advantage of trading using opposite Durect and MiMedx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Durect position performs unexpectedly, MiMedx 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 MiMedx will offset losses from the drop in MiMedx's long position.| Durect vs. Shuttle Pharmaceuticals | Durect vs. Organogenesis Holdings | Durect vs. Alpha Teknova | Durect vs. Sonoma Pharmaceuticals |
| MiMedx vs. Monte Rosa Therapeutics | MiMedx vs. Design Therapeutics | MiMedx vs. Werewolf Therapeutics | MiMedx vs. Ikena Oncology |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |