Correlation: 0.70 · Cointegrated: yes
Z-score: 1.14 entry / 3.04 rolling
Half-life 5.8h · Hurst 0.92 · Hedge ratio 0.69
Pair volatility: 41.00%
Backtest: 70.00% win · Sharpe -2.16 · -1.86% return · 3.04% max drawdown
Pair Analysis: Long FET / Short APT
- Roll Z-Score (1h): 3.42 (Spread is significantly extended; indicates FET is currently "cheap" relative to APT on a short-term basis).
- Roll Z-Score (4h): 0.97
- Roll Z-Score (1d): 0.43
- Correlation: 0.70 (1h)
- Hedge Weights (4h): 13.6% FET / 86.4% APT (Sizing recommendation)
Sentiment & Technical Context
- FET (Bullish): Sentiment is supported by accumulation from smart money and tangible progress in AI agent adoption, positioning it as a strong candidate for the long leg.
- APT (Bearish): Sentiment is negative due to a persistent supply overhang from monthly token unlocks and a technical breakdown, making it a preferred short candidate despite positive infrastructure developments.
Remark
This setup is currently well-aligned with both sentiment and quant signals. The 1h Roll Z-Score of 3.42 suggests the spread has stretched significantly, providing a strong mean-reversion entry point for the Long FET / Short APT direction. The trade effectively pairs a bullish AI-sector narrative against a bearish supply-overhang narrative.
FET
APT