Correlation: 0.71 · Cointegrated: yes
Z-score: 1.05 entry / 1.67 rolling
Half-life 5.8h · Hurst 0.90 · Hedge ratio 0.35
Pair volatility: 39.49%
Backtest: 77.78% win · Sharpe 1.68 · 0.93% return · 1.36% max drawdown
Pair Analysis: Long FET / Short APT
- Roll Z-Score (1h): 2.48 (APT is rich relative to FET; high mean-reversion potential)
- Roll Z-Score (4h): 1.73
- Correlation: 0.70 (1h)
- Half-Life: 138h (~5.8d)
- Hedge Weights (4h): 23.9% FET / 76.1% APT
Analysis & Sentiment:
- Technical Setup: The 1h Roll Z-Score of 2.48 indicates that APT is currently significantly "rich" relative to FET, aligning with your Long FET / Short APT direction. The 4h Z-Score (1.73) confirms this divergence is not just a momentary spike but a broader trend.
- Sentiment: Both assets carry bullish sentiment, but the drivers differ. FET is benefiting from whale accumulation and a high circulating supply (96% unlocked), which reduces dilution risk. APT is supported by structural upgrades (AIP-146) and ecosystem growth, though it currently faces retail disinterest.
- Remark: This is a classic mean-reversion setup where you are fading the relative outperformance of APT. Given the high 1h Z-Score, the trade is well-positioned to capture a convergence if APT's recent relative strength cools. Monitor the 1h Z-Score closely; if it begins to compress toward 1.5, the primary edge of this entry may be realized.
FET
APT