Correlation Between Uniswap Protocol and Newcourt Acquisition | UNI.CC vs. NCAC

Correlation Between Uniswap Protocol and Newcourt Acquisition

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Can any of the company-specific risk be diversified away by investing in both Uniswap Protocol and Newcourt Acquisition 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 Newcourt Acquisition 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 Newcourt Acquisition Corp, you can compare the effects of market volatilities on Uniswap Protocol and Newcourt Acquisition 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 Newcourt Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniswap Protocol and Newcourt Acquisition.

Diversification Opportunities for Uniswap Protocol and Newcourt Acquisition

UniswapNewcourtDiversified AwayUniswapNewcourtDiversified Away100%
0.84
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Uniswap and Newcourt is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Uniswap Protocol Token and Newcourt Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newcourt Acquisition Corp 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 Newcourt Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newcourt Acquisition Corp has no effect on the direction of Uniswap Protocol i.e., Uniswap Protocol and Newcourt Acquisition go up and down completely randomly.

Pair Corralation between Uniswap Protocol and Newcourt Acquisition

If you would invest  818.00  in Uniswap Protocol Token on September 14, 2024 and sell it today you would earn a total of  961.00  from holding Uniswap Protocol Token or generate 117.48% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy4.55%
ValuesDaily Returns

Uniswap Protocol Token  vs.  Newcourt Acquisition Corp

 Performance 
JavaScript chart by amCharts 3.21.15OctNov 050100150
JavaScript chart by amCharts 3.21.15UNI NCAC
       Timeline  
Uniswap Protocol Token 

Risk-Adjusted Performance

18 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Uniswap Protocol Token are ranked lower than 18 (%) 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.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec81012141618
Newcourt Acquisition Corp 

Risk-Adjusted Performance

0 of 100

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

Uniswap Protocol and Newcourt Acquisition Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-21.71-16.26-10.81-5.360.05.9212.0418.1724.2930.41 1234
JavaScript chart by amCharts 3.21.15UNI NCAC
       Returns  

Pair Trading with Uniswap Protocol and Newcourt Acquisition

The main advantage of trading using opposite Uniswap Protocol and Newcourt Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniswap Protocol position performs unexpectedly, Newcourt Acquisition 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 Newcourt Acquisition will offset losses from the drop in Newcourt Acquisition's long position.
The idea behind Uniswap Protocol Token and Newcourt Acquisition Corp 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.

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