Correlation Between Uniswap Protocol and MLN
Can any of the company-specific risk be diversified away by investing in both Uniswap Protocol and MLN 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 MLN 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 MLN, you can compare the effects of market volatilities on Uniswap Protocol and MLN 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 MLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniswap Protocol and MLN.
Diversification Opportunities for Uniswap Protocol and MLN
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Uniswap and MLN is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Uniswap Protocol Token and MLN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MLN 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 MLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MLN has no effect on the direction of Uniswap Protocol i.e., Uniswap Protocol and MLN go up and down completely randomly.
Pair Corralation between Uniswap Protocol and MLN
Assuming the 90 days trading horizon Uniswap Protocol Token is expected to under-perform the MLN. In addition to that, Uniswap Protocol is 1.38 times more volatile than MLN. It trades about -0.24 of its total potential returns per unit of risk. MLN is currently generating about -0.31 per unit of volatility. If you would invest 1,746 in MLN on November 9, 2024 and sell it today you would lose (468.00) from holding MLN or give up 26.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uniswap Protocol Token vs. MLN
Performance |
| Timeline |
| Uniswap Protocol Token |
| MLN |
Uniswap Protocol and MLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uniswap Protocol and MLN
The main advantage of trading using opposite Uniswap Protocol and MLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniswap Protocol position performs unexpectedly, MLN 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 MLN will offset losses from the drop in MLN'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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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