Correlation Between Solana and Uniswap Protocol

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

Diversification Opportunities for Solana and Uniswap Protocol

0.54
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Solana and Uniswap is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Solana 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 Solana 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 Solana 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 Solana i.e., Solana and Uniswap Protocol go up and down completely randomly.

Pair Corralation between Solana and Uniswap Protocol

Assuming the 90 days trading horizon Solana is expected to under-perform the Uniswap Protocol. In addition to that, Solana is 1.48 times more volatile than Uniswap Protocol Token. It trades about -0.15 of its total potential returns per unit of risk. Uniswap Protocol Token is currently generating about -0.03 per unit of volatility. If you would invest  665.00  in Uniswap Protocol Token on September 1, 2022 and sell it today you would lose (116.00)  from holding Uniswap Protocol Token or give up 17.44% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Solana  vs.  Uniswap Protocol Token

 Performance (%) 
       Timeline  
Solana 
Solana Performance
0 of 100
Over the last 90 days Solana has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Crypto's basic indicators remain somewhat strong which may send shares a bit higher in December 2022. The current disturbance may also be a sign of long term up-swing for Solana investors.

Solana Price Channel

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.

Uniswap Price Channel

Solana and Uniswap Protocol Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Solana and Uniswap Protocol

The main advantage of trading using opposite Solana and Uniswap Protocol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solana 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.
Solana vs. XRP
Solana vs. Polygon
Solana vs. Chainlink
Solana vs. Polkadot
The idea behind Solana 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. XRP
Uniswap Protocol vs. Solana
Uniswap Protocol vs. Polygon
Uniswap Protocol vs. Chainlink
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

Other Complementary Tools

Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go