Correlation Between Evolus and Durect
Can any of the company-specific risk be diversified away by investing in both Evolus 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 Evolus and Durect into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolus Inc and Durect, you can compare the effects of market volatilities on Evolus 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 Evolus with a short position of Durect. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolus and Durect.
Diversification Opportunities for Evolus and Durect
Very good diversification
The 3 months correlation between Evolus and Durect is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Evolus Inc and Durect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Durect and Evolus 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 Evolus Inc 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 Evolus i.e., Evolus and Durect go up and down completely randomly.
Pair Corralation between Evolus and Durect
Given the investment horizon of 90 days Evolus Inc is expected to generate 1.15 times more return on investment than Durect. However, Evolus is 1.15 times more volatile than Durect. It trades about 0.03 of its potential returns per unit of risk. Durect is currently generating about -0.04 per unit of risk. If you would invest 1,341 in Evolus Inc on December 8, 2024 and sell it today you would earn a total of 17.00 from holding Evolus Inc or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolus Inc vs. Durect
Performance |
| Timeline |
| Evolus Inc |
| Durect |
Evolus and Durect Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolus and Durect
The main advantage of trading using opposite Evolus and Durect positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolus 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.| Evolus vs. Collegium Pharmaceutical | Evolus vs. Phibro Animal Health | Evolus vs. ANI Pharmaceuticals | Evolus vs. Procaps Group SA |
| Durect vs. Shuttle Pharmaceuticals | Durect vs. Organogenesis Holdings | Durect vs. Alpha Teknova | Durect vs. Sonoma Pharmaceuticals |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |