Correlation Between AvePoint and SPACE

Can any of the company-specific risk be diversified away by investing in both AvePoint and SPACE 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 AvePoint and SPACE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AvePoint and SPACE, you can compare the effects of market volatilities on AvePoint and SPACE 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 AvePoint with a short position of SPACE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AvePoint and SPACE.

Diversification Opportunities for AvePoint and SPACE

0.45

Correlation Coefficient

AvePoint  SPACE

Very weak diversification

The 3 months correlation between AvePoint and SPACE is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding AvePoint and SPACE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPACE and AvePoint 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 AvePoint are associated (or correlated) with SPACE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPACE has no effect on the direction of AvePoint i.e., AvePoint and SPACE go up and down completely randomly.

Pair Corralation between AvePoint and SPACE

Assuming the 90 days horizon AvePoint is expected to generate 1.05 times more return on investment than SPACE. However, AvePoint is 1.05 times more volatile than SPACE. It trades about 0.07 of its potential returns per unit of risk. SPACE is currently generating about -0.05 per unit of risk. If you would invest  655.00  in AvePoint on February 20, 2025 and sell it today you would earn a total of  101.00  from holding AvePoint or generate 15.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	96.88%
Values	Daily Returns

AvePoint  vs.  SPACE

AvePoint

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in AvePoint are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, AvePoint showed solid returns over the last few months and may actually be approaching a breakup point.

SPACE

Risk-Adjusted Performance

Very Weak

Over the last 90 days SPACE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in June 2025. The latest tumult may also be a sign of longer-term up-swing for SPACE shareholders.

Pair Trading with AvePoint and SPACE

The main advantage of trading using opposite AvePoint and SPACE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AvePoint position performs unexpectedly, SPACE 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 SPACE will offset losses from the drop in SPACE's long position.

The idea behind AvePoint and SPACE 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.

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 the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.