Correlation Between Uniswap Protocol and GFT
Can any of the company-specific risk be diversified away by investing in both Uniswap Protocol and GFT 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 GFT 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 GFT, you can compare the effects of market volatilities on Uniswap Protocol and GFT 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 GFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniswap Protocol and GFT.
Diversification Opportunities for Uniswap Protocol and GFT
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Uniswap and GFT is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Uniswap Protocol Token and GFT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GFT 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 GFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GFT has no effect on the direction of Uniswap Protocol i.e., Uniswap Protocol and GFT go up and down completely randomly.
Pair Corralation between Uniswap Protocol and GFT
Assuming the 90 days trading horizon Uniswap Protocol Token is expected to generate 0.8 times more return on investment than GFT. However, Uniswap Protocol Token is 1.26 times less risky than GFT. It trades about 0.06 of its potential returns per unit of risk. GFT is currently generating about -0.04 per unit of risk. If you would invest 606.00 in Uniswap Protocol Token on August 30, 2024 and sell it today you would earn a total of 712.00 from holding Uniswap Protocol Token or generate 117.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 46.15% |
| Values | Daily Returns |
Uniswap Protocol Token vs. GFT
Performance |
| Timeline |
| Uniswap Protocol Token |
| GFT |
Uniswap Protocol and GFT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uniswap Protocol and GFT
The main advantage of trading using opposite Uniswap Protocol and GFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniswap Protocol position performs unexpectedly, GFT 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 GFT will offset losses from the drop in GFT's long position.| Uniswap Protocol vs. Staked Ether | Uniswap Protocol vs. EigenLayer | Uniswap Protocol vs. EOSDAC | Uniswap Protocol vs. BLZ |
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 Stocks Directory module to find actively traded stocks across global markets.
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