Correlation Between Dow Jones and Uniswap Protocol
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Uniswap Protocol 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 Dow Jones and Uniswap Protocol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and Uniswap Protocol Token, you can compare the effects of market volatilities on Dow Jones and Uniswap Protocol 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 Dow Jones with a short position of Uniswap Protocol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Uniswap Protocol.
Diversification Opportunities for Dow Jones and Uniswap Protocol
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dow and Uniswap is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Uniswap Protocol Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniswap Protocol Token and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with Uniswap Protocol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uniswap Protocol Token has no effect on the direction of Dow Jones i.e., Dow Jones and Uniswap Protocol go up and down completely randomly.
Pair Corralation between Dow Jones and Uniswap Protocol
Assuming the 90 days trading horizon Dow Jones is expected to generate 3.37 times less return on investment than Uniswap Protocol. But when comparing it to its historical volatility, Dow Jones Industrial is 8.45 times less risky than Uniswap Protocol. It trades about 0.08 of its potential returns per unit of risk. Uniswap Protocol Token is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 625.00 in Uniswap Protocol Token on December 11, 2024 and sell it today you would earn a total of 91.00 from holding Uniswap Protocol Token or generate 14.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 96.68% |
| Values | Daily Returns |
Dow Jones Industrial vs. Uniswap Protocol Token
Performance |
| Timeline |
Dow Jones and Uniswap Protocol Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Uniswap Protocol Token
Pair trading matchups for Uniswap Protocol
Pair Trading with Dow Jones and Uniswap Protocol
The main advantage of trading using opposite Dow Jones and Uniswap Protocol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Uniswap Protocol 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 Uniswap Protocol will offset losses from the drop in Uniswap Protocol's long position.| Dow Jones vs. GMO Internet | ||
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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