Correlation Between Chainlink and Uniswap Protocol

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

Diversification Opportunities for Chainlink and Uniswap Protocol

-0.05
  Correlation Coefficient

Good diversification

The 3 months correlation between Chainlink and Uniswap is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Chainlink 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 Chainlink 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 Chainlink 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 Chainlink i.e., Chainlink and Uniswap Protocol go up and down completely randomly.

Pair Corralation between Chainlink and Uniswap Protocol

Assuming the 90 days trading horizon Chainlink is expected to under-perform the Uniswap Protocol. In addition to that, Chainlink is 1.19 times more volatile than Uniswap Protocol Token. It trades about -0.05 of its total potential returns per unit of risk. Uniswap Protocol Token is currently generating about 0.11 per unit of volatility. If you would invest  617.00  in Uniswap Protocol Token on July 8, 2022 and sell it today you would earn a total of  61.00  from holding Uniswap Protocol Token or generate 9.89% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy8.37%
ValuesDaily Returns

Chainlink  vs.  Uniswap Protocol Token

 Performance (%) 
       Timeline  
Chainlink 
Chainlink Performance
6 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Chainlink are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Chainlink sustained solid returns over the last few months and may actually be approaching a breakup point.

Chainlink Price Channel

Uniswap Protocol Token 
Uniswap Performance
8 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Uniswap Protocol Token are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Uniswap Protocol sustained solid returns over the last few months and may actually be approaching a breakup point.

Uniswap Price Channel

Chainlink and Uniswap Protocol Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Chainlink and Uniswap Protocol

The main advantage of trading using opposite Chainlink and Uniswap Protocol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chainlink 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.
Chainlink vs. XRP
Chainlink vs. Solana
Chainlink vs. Polkadot
Chainlink vs. Polygon
The idea behind Chainlink 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. Polkadot
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

Other Complementary Tools

Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go