Correlation Between Uniswap Protocol and WhiteBIT Token
Can any of the company-specific risk be diversified away by investing in both Uniswap Protocol and WhiteBIT Token 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 WhiteBIT Token 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 WhiteBIT Token, you can compare the effects of market volatilities on Uniswap Protocol and WhiteBIT Token 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 WhiteBIT Token. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniswap Protocol and WhiteBIT Token.
Diversification Opportunities for Uniswap Protocol and WhiteBIT Token
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Uniswap and WhiteBIT is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Uniswap Protocol Token and WhiteBIT Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WhiteBIT Token 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 WhiteBIT Token. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WhiteBIT Token has no effect on the direction of Uniswap Protocol i.e., Uniswap Protocol and WhiteBIT Token go up and down completely randomly.
Pair Corralation between Uniswap Protocol and WhiteBIT Token
Assuming the 90 days trading horizon Uniswap Protocol is expected to generate 1.43 times less return on investment than WhiteBIT Token. In addition to that, Uniswap Protocol is 2.34 times more volatile than WhiteBIT Token. It trades about 0.07 of its total potential returns per unit of risk. WhiteBIT Token is currently generating about 0.22 per unit of volatility. If you would invest 995.00 in WhiteBIT Token on August 30, 2024 and sell it today you would earn a total of 1,372 from holding WhiteBIT Token or generate 137.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 45.97% |
| Values | Daily Returns |
Uniswap Protocol Token vs. WhiteBIT Token
Performance |
| Timeline |
| Uniswap Protocol Token |
| WhiteBIT Token |
Uniswap Protocol and WhiteBIT Token Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uniswap Protocol and WhiteBIT Token
The main advantage of trading using opposite Uniswap Protocol and WhiteBIT Token positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniswap Protocol position performs unexpectedly, WhiteBIT Token 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 WhiteBIT Token will offset losses from the drop in WhiteBIT Token's long position.| Uniswap Protocol vs. Staked Ether | Uniswap Protocol vs. EigenLayer | Uniswap Protocol vs. EOSDAC | Uniswap Protocol vs. BLZ |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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