Correlation Between Uniswap Protocol and MNW
Can any of the company-specific risk be diversified away by investing in both Uniswap Protocol and MNW 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 MNW 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 MNW, you can compare the effects of market volatilities on Uniswap Protocol and MNW 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 MNW. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniswap Protocol and MNW.
Diversification Opportunities for Uniswap Protocol and MNW
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Uniswap and MNW is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Uniswap Protocol Token and MNW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MNW 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 MNW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MNW has no effect on the direction of Uniswap Protocol i.e., Uniswap Protocol and MNW go up and down completely randomly.
Pair Corralation between Uniswap Protocol and MNW
Assuming the 90 days trading horizon Uniswap Protocol is expected to generate 16.57 times less return on investment than MNW. But when comparing it to its historical volatility, Uniswap Protocol Token is 23.45 times less risky than MNW. It trades about 0.39 of its potential returns per unit of risk. MNW is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 29.00 in MNW on September 4, 2024 and sell it today you would earn a total of 29.00 from holding MNW or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uniswap Protocol Token vs. MNW
Performance |
| Timeline |
| Uniswap Protocol Token |
| MNW |
Uniswap Protocol and MNW Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uniswap Protocol and MNW
The main advantage of trading using opposite Uniswap Protocol and MNW positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniswap Protocol position performs unexpectedly, MNW 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 MNW will offset losses from the drop in MNW'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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |