Correlation Between Uniswap Protocol and Maverick Protocol
Can any of the company-specific risk be diversified away by investing in both Uniswap Protocol and Maverick 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 Uniswap Protocol and Maverick Protocol 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 Maverick Protocol, you can compare the effects of market volatilities on Uniswap Protocol and Maverick 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 Uniswap Protocol with a short position of Maverick Protocol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniswap Protocol and Maverick Protocol.
Diversification Opportunities for Uniswap Protocol and Maverick Protocol
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Uniswap and Maverick is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Uniswap Protocol Token and Maverick Protocol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maverick Protocol 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 Maverick Protocol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maverick Protocol has no effect on the direction of Uniswap Protocol i.e., Uniswap Protocol and Maverick Protocol go up and down completely randomly.
Pair Corralation between Uniswap Protocol and Maverick Protocol
Assuming the 90 days trading horizon Uniswap Protocol Token is expected to generate 0.72 times more return on investment than Maverick Protocol. However, Uniswap Protocol Token is 1.38 times less risky than Maverick Protocol. It trades about -0.32 of its potential returns per unit of risk. Maverick Protocol is currently generating about -0.26 per unit of risk. If you would invest 1,261 in Uniswap Protocol Token on January 29, 2024 and sell it today you would lose (464.00) from holding Uniswap Protocol Token or give up 36.8% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Uniswap Protocol Token vs. Maverick Protocol
Performance |
Timeline |
Uniswap Protocol Token |
Maverick Protocol |
Uniswap Protocol and Maverick Protocol Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Uniswap Protocol and Maverick Protocol
The main advantage of trading using opposite Uniswap Protocol and Maverick Protocol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniswap Protocol position performs unexpectedly, Maverick 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 Maverick Protocol will offset losses from the drop in Maverick Protocol's long position.Uniswap Protocol vs. Solana | Uniswap Protocol vs. XRP | Uniswap Protocol vs. Staked Ether | Uniswap Protocol vs. The Open Network |
Maverick Protocol vs. Solana | Maverick Protocol vs. XRP | Maverick Protocol vs. Staked Ether | Maverick Protocol vs. The Open Network |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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