Correlation Between Durect and Qiagen NV

Can any of the company-specific risk be diversified away by investing in both Durect and Qiagen NV 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 Qiagen NV into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Durect and Qiagen NV, you can compare the effects of market volatilities on Durect and Qiagen NV 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 Qiagen NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Durect and Qiagen NV.

Diversification Opportunities for Durect and Qiagen NV

-0.29

Correlation Coefficient

Durect  Qiagen NV

Very good diversification

The 3 months correlation between Durect and Qiagen is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Durect and Qiagen NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qiagen NV 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 Qiagen NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qiagen NV has no effect on the direction of Durect i.e., Durect and Qiagen NV go up and down completely randomly.

Pair Corralation between Durect and Qiagen NV

Given the investment horizon of 90 days Durect is expected to under-perform the Qiagen NV. In addition to that, Durect is 3.88 times more volatile than Qiagen NV. It trades about -0.02 of its total potential returns per unit of risk. Qiagen NV is currently generating about 0.06 per unit of volatility. If you would invest  4,109  in Qiagen NV on September 26, 2024 and sell it today you would earn a total of  397.00  from holding Qiagen NV or generate 9.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Durect  vs.  Qiagen NV

Durect

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Durect has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Qiagen NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Qiagen NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Qiagen NV is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Durect and Qiagen NV

The main advantage of trading using opposite Durect and Qiagen NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Durect position performs unexpectedly, Qiagen NV 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 Qiagen NV will offset losses from the drop in Qiagen NV's long position.

The idea behind Durect and Qiagen NV pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.