Correlation Between Uniswap Protocol and CLO
Can any of the company-specific risk be diversified away by investing in both Uniswap Protocol and CLO 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 Uniswap Protocol and CLO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uniswap Protocol Token and CLO, you can compare the effects of market volatilities on Uniswap Protocol and CLO 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 Uniswap Protocol with a short position of CLO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniswap Protocol and CLO.
Diversification Opportunities for Uniswap Protocol and CLO
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Uniswap and CLO is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Uniswap Protocol Token and CLO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLO and Uniswap Protocol 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 Uniswap Protocol Token are associated (or correlated) with CLO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLO has no effect on the direction of Uniswap Protocol i.e., Uniswap Protocol and CLO go up and down completely randomly.
Pair Corralation between Uniswap Protocol and CLO
Assuming the 90 days trading horizon Uniswap Protocol is expected to generate 17.58 times less return on investment than CLO. But when comparing it to its historical volatility, Uniswap Protocol Token is 23.83 times less risky than CLO. It trades about 0.39 of its potential returns per unit of risk. CLO is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 0.07 in CLO on September 4, 2024 and sell it today you would lose (0.07) from holding CLO or give up 91.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uniswap Protocol Token vs. CLO
Performance |
| Timeline |
| Uniswap Protocol Token |
| CLO |
Uniswap Protocol and CLO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uniswap Protocol and CLO
The main advantage of trading using opposite Uniswap Protocol and CLO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniswap Protocol position performs unexpectedly, CLO 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 CLO will offset losses from the drop in CLO's long position.| Uniswap Protocol vs. XRP | Uniswap Protocol vs. Solana | Uniswap Protocol vs. Staked Ether | Uniswap Protocol vs. Toncoin |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |