Correlation Between Uniswap Protocol and GRIN
Can any of the company-specific risk be diversified away by investing in both Uniswap Protocol and GRIN 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 GRIN 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 GRIN, you can compare the effects of market volatilities on Uniswap Protocol and GRIN 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 GRIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniswap Protocol and GRIN.
Diversification Opportunities for Uniswap Protocol and GRIN
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Uniswap and GRIN is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Uniswap Protocol Token and GRIN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIN 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 GRIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIN has no effect on the direction of Uniswap Protocol i.e., Uniswap Protocol and GRIN go up and down completely randomly.
Pair Corralation between Uniswap Protocol and GRIN
Assuming the 90 days trading horizon Uniswap Protocol Token is expected to under-perform the GRIN. But the crypto coin apears to be less risky and, when comparing its historical volatility, Uniswap Protocol Token is 1.2 times less risky than GRIN. The crypto coin trades about -0.25 of its potential returns per unit of risk. The GRIN is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 2.95 in GRIN on November 8, 2024 and sell it today you would lose (0.76) from holding GRIN or give up 25.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uniswap Protocol Token vs. GRIN
Performance |
| Timeline |
| Uniswap Protocol Token |
| GRIN |
Uniswap Protocol and GRIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uniswap Protocol and GRIN
The main advantage of trading using opposite Uniswap Protocol and GRIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniswap Protocol position performs unexpectedly, GRIN 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 GRIN will offset losses from the drop in GRIN's long position.| Uniswap Protocol vs. Staked Ether | Uniswap Protocol vs. Phala Network | Uniswap Protocol vs. EigenLayer | Uniswap Protocol vs. EOSDAC |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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