Correlation Between Dai and Uniswap Protocol

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Dai 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 Dai and Uniswap Protocol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dai and Uniswap Protocol Token, you can compare the effects of market volatilities on Dai 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 Dai with a short position of Uniswap Protocol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dai and Uniswap Protocol.

Diversification Opportunities for Dai and Uniswap Protocol

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Dai and Uniswap is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dai 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 Dai 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 Dai 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 Dai i.e., Dai and Uniswap Protocol go up and down completely randomly.

Pair Corralation between Dai and Uniswap Protocol

If you would invest (100.00)  in Uniswap Protocol Token on July 1, 2022 and sell it today you would earn a total of  100.00  from holding Uniswap Protocol Token or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Dai  vs.  Uniswap Protocol Token

 Performance (%) 
       Timeline  
Dai 
Dai Performance
0 of 100
Over the last 90 days Dai has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Dai is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Uniswap Protocol Token 
Uniswap Performance
0 of 100
Over the last 90 days Uniswap Protocol Token has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Uniswap Protocol is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Dai and Uniswap Protocol Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Dai and Uniswap Protocol

The main advantage of trading using opposite Dai and Uniswap Protocol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dai 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.
Dai vs. Staked Ether
The idea behind Dai 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.
Uniswap Protocol vs. Staked Ether
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

Other Complementary Tools

Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go