Correlation Between AGVC and Uniswap Protocol

Can any of the company-specific risk be diversified away by investing in both AGVC and Uniswap Protocol 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 AGVC and Uniswap Protocol into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AGVC and Uniswap Protocol Token, you can compare the effects of market volatilities on AGVC and Uniswap Protocol 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 AGVC with a short position of Uniswap Protocol. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGVC and Uniswap Protocol.

Diversification Opportunities for AGVC and Uniswap Protocol

0.21

Correlation Coefficient

AGVC  Uniswap Protocol

Modest diversification

The 3 months correlation between AGVC and Uniswap is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding AGVC and Uniswap Protocol Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniswap Protocol Token and AGVC 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 AGVC are associated (or correlated) with Uniswap Protocol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uniswap Protocol Token has no effect on the direction of AGVC i.e., AGVC and Uniswap Protocol go up and down completely randomly.

Pair Corralation between AGVC and Uniswap Protocol

Assuming the 90 days trading horizon AGVC is expected to generate 8.96 times less return on investment than Uniswap Protocol. But when comparing it to its historical volatility, AGVC is 1.38 times less risky than Uniswap Protocol. It trades about 0.01 of its potential returns per unit of risk. Uniswap Protocol Token is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  519.00  in Uniswap Protocol Token on February 7, 2024 and sell it today you would earn a total of  235.00  from holding Uniswap Protocol Token or generate 45.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	69.2%
Values	Daily Returns

AGVC  vs.  Uniswap Protocol Token

AGVC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AGVC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, AGVC is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Uniswap Protocol Token

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Uniswap Protocol Token are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady forward indicators, Uniswap Protocol exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AGVC and Uniswap Protocol

The main advantage of trading using opposite AGVC and Uniswap Protocol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGVC position performs unexpectedly, Uniswap Protocol 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 Uniswap Protocol will offset losses from the drop in Uniswap Protocol's long position.

The idea behind AGVC and Uniswap Protocol Token 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.

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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.