Correlation Between Uniswap Protocol and Nano
Can any of the company-specific risk be diversified away by investing in both Uniswap Protocol and Nano 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 Nano 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 Nano, you can compare the effects of market volatilities on Uniswap Protocol and Nano 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 Nano. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniswap Protocol and Nano.
Diversification Opportunities for Uniswap Protocol and Nano
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Uniswap and Nano is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Uniswap Protocol Token and Nano in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano 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 Nano. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano has no effect on the direction of Uniswap Protocol i.e., Uniswap Protocol and Nano go up and down completely randomly.
Pair Corralation between Uniswap Protocol and Nano
Assuming the 90 days trading horizon Uniswap Protocol Token is expected to under-perform the Nano. But the crypto coin apears to be less risky and, when comparing its historical volatility, Uniswap Protocol Token is 2.11 times less risky than Nano. The crypto coin trades about -0.23 of its potential returns per unit of risk. The Nano is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 113.00 in Nano on November 28, 2024 and sell it today you would lose (2.00) from holding Nano or give up 1.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uniswap Protocol Token vs. Nano
Performance |
| Timeline |
| Uniswap Protocol Token |
| Nano |
Uniswap Protocol and Nano Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uniswap Protocol and Nano
The main advantage of trading using opposite Uniswap Protocol and Nano positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniswap Protocol position performs unexpectedly, Nano 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 Nano will offset losses from the drop in Nano'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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |