Correlation Between Uniswap Protocol and Staked Ether
Can any of the company-specific risk be diversified away by investing in both Uniswap Protocol and Staked Ether 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 Staked Ether 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 Staked Ether, you can compare the effects of market volatilities on Uniswap Protocol and Staked Ether 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 Staked Ether. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniswap Protocol and Staked Ether.
Diversification Opportunities for Uniswap Protocol and Staked Ether
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Uniswap and Staked is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Uniswap Protocol Token and Staked Ether in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Staked Ether 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 Staked Ether. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Staked Ether has no effect on the direction of Uniswap Protocol i.e., Uniswap Protocol and Staked Ether go up and down completely randomly.
Pair Corralation between Uniswap Protocol and Staked Ether
Assuming the 90 days trading horizon Uniswap Protocol Token is expected to under-perform the Staked Ether. In addition to that, Uniswap Protocol is 1.25 times more volatile than Staked Ether. It trades about -0.31 of its total potential returns per unit of risk. Staked Ether is currently generating about -0.21 per unit of volatility. If you would invest 329,979 in Staked Ether on November 18, 2024 and sell it today you would lose (60,677) from holding Staked Ether or give up 18.39% 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. Staked Ether
Performance |
| Timeline |
| Uniswap Protocol Token |
| Staked Ether |
Uniswap Protocol and Staked Ether Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uniswap Protocol and Staked Ether
The main advantage of trading using opposite Uniswap Protocol and Staked Ether positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniswap Protocol position performs unexpectedly, Staked Ether 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 Staked Ether will offset losses from the drop in Staked Ether's long position.| Uniswap Protocol vs. Staked Ether | Uniswap Protocol vs. Phala Network | Uniswap Protocol vs. EigenLayer | Uniswap Protocol vs. EOSDAC |
| Staked Ether vs. Cronos | Staked Ether vs. Wrapped Bitcoin | Staked Ether vs. Monero | Staked Ether vs. Tether |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance |