Correlation Between Durect and Leucadia National
Can any of the company-specific risk be diversified away by investing in both Durect and Leucadia National 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 Leucadia National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Durect and Leucadia National, you can compare the effects of market volatilities on Durect and Leucadia National 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 Leucadia National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Durect and Leucadia National.
Diversification Opportunities for Durect and Leucadia National
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Durect and Leucadia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Durect and Leucadia National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leucadia National 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 Leucadia National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leucadia National has no effect on the direction of Durect i.e., Durect and Leucadia National go up and down completely randomly.
Pair Corralation between Durect and Leucadia National
If you would invest 90.00 in Durect on February 6, 2024 and sell it today you would earn a total of 26.00 from holding Durect or generate 28.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Durect vs. Leucadia National
Performance |
| Timeline |
| Durect |
| Leucadia National |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Durect and Leucadia National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Durect and Leucadia National
The main advantage of trading using opposite Durect and Leucadia National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Durect position performs unexpectedly, Leucadia National 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 Leucadia National will offset losses from the drop in Leucadia National's long position.| Durect vs. Shuttle Pharmaceuticals | Durect vs. Lifecore Biomedical | Durect vs. Journey Medical Corp | Durect vs. Lucy Scientific Discovery |
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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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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