The clustering coefficient, introduced by Watts and Strogatz in the context of binary undirected graphs, is frequently used for analyzing the structure of a network. The LocalClusteringCoefficient function extends the clustering coefficient to directed and weighted graphs. The LocalClusteringCoefficient function is based on the paper "Clustering in complex directed networks"by Georgio Fagiolo.
For general information about the clustering coefficient, see D. J. Watts and S. H. Strogatz. Collective dynamics of "small-world" networks. Nature, 393:440–442, 1998