Correlation Between Eagle Pharmaceuticals and Durect
Can any of the company-specific risk be diversified away by investing in both Eagle Pharmaceuticals and Durect 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 Eagle Pharmaceuticals and Durect into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Pharmaceuticals and Durect, you can compare the effects of market volatilities on Eagle Pharmaceuticals and Durect 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 Eagle Pharmaceuticals with a short position of Durect. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Pharmaceuticals and Durect.
Diversification Opportunities for Eagle Pharmaceuticals and Durect
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eagle and Durect is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Pharmaceuticals and Durect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Durect and Eagle Pharmaceuticals 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 Eagle Pharmaceuticals are associated (or correlated) with Durect. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Durect has no effect on the direction of Eagle Pharmaceuticals i.e., Eagle Pharmaceuticals and Durect go up and down completely randomly.
Pair Corralation between Eagle Pharmaceuticals and Durect
If you would invest 90.00 in Durect on September 21, 2024 and sell it today you would lose (4.00) from holding Durect or give up 4.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Eagle Pharmaceuticals vs. Durect
Performance |
| Timeline |
| Eagle Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Durect |
Eagle Pharmaceuticals and Durect Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Pharmaceuticals and Durect
The main advantage of trading using opposite Eagle Pharmaceuticals and Durect positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Pharmaceuticals position performs unexpectedly, Durect 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 Durect will offset losses from the drop in Durect's long position.| Eagle Pharmaceuticals vs. ANI Pharmaceuticals | Eagle Pharmaceuticals vs. Phibro Animal Health | Eagle Pharmaceuticals vs. Prestige Brand Holdings | Eagle Pharmaceuticals vs. Collegium Pharmaceutical |
| Durect vs. Emergent Biosolutions | Durect vs. Neurocrine Biosciences | Durect vs. Teva Pharma Industries | Durect vs. Haleon plc |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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