Correlation Between Uniswap Protocol and Wormhole

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Uniswap Protocol and Wormhole 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 Wormhole 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 Wormhole, you can compare the effects of market volatilities on Uniswap Protocol and Wormhole 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 Wormhole. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniswap Protocol and Wormhole.

Diversification Opportunities for Uniswap Protocol and Wormhole

UniswapWormholeDiversified AwayUniswapWormholeDiversified Away100%
0.88
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Uniswap and Wormhole is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Uniswap Protocol Token and Wormhole in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wormhole 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 Wormhole. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wormhole has no effect on the direction of Uniswap Protocol i.e., Uniswap Protocol and Wormhole go up and down completely randomly.

Pair Corralation between Uniswap Protocol and Wormhole

Assuming the 90 days trading horizon Uniswap Protocol Token is expected to under-perform the Wormhole. But the crypto coin apears to be less risky and, when comparing its historical volatility, Uniswap Protocol Token is 1.56 times less risky than Wormhole. The crypto coin trades about -0.32 of its potential returns per unit of risk. The Wormhole is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest  23.00  in Wormhole on November 23, 2024 and sell it today you would lose (7.00) from holding Wormhole or give up 30.43% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Uniswap Protocol Token  vs.  Wormhole

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -40-20020406080100
JavaScript chart by amCharts 3.21.15UNI W
       Timeline  
Uniswap Protocol Token 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Uniswap Protocol Token has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward indicators, Uniswap Protocol is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1012141618
Wormhole 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Wormhole has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in March 2025. The latest tumult may also be a sign of longer-term up-swing for Wormhole shareholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.20.250.30.350.4

Uniswap Protocol and Wormhole Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-22.93-17.17-11.42-5.66-0.09595.5711.4317.2923.1529.01 0.00650.00700.00750.0080
JavaScript chart by amCharts 3.21.15UNI W
       Returns  

Pair Trading with Uniswap Protocol and Wormhole

The main advantage of trading using opposite Uniswap Protocol and Wormhole positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniswap Protocol position performs unexpectedly, Wormhole 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 Wormhole will offset losses from the drop in Wormhole's long position.
The idea behind Uniswap Protocol Token and Wormhole pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

Other Complementary Tools

Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Share Portfolio
Track or share privately all of your investments from the convenience of any device
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing