Correlation Between AvePoint and Science Technology

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

By analyzing existing cross correlation between AvePoint and Science Technology Fund, you can compare the effects of market volatilities on AvePoint and Science Technology 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 Science Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of AvePoint and Science Technology.

Diversification Opportunities for AvePoint and Science Technology

0.75

Correlation Coefficient

AvePoint  Science Technology

Poor diversification

The 3 months correlation between AvePoint and Science is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding AvePoint and Science Technology Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Science Technology 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 Science Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Science Technology has no effect on the direction of AvePoint i.e., AvePoint and Science Technology go up and down completely randomly.

Pair Corralation between AvePoint and Science Technology

Assuming the 90 days horizon AvePoint is expected to under-perform the Science Technology. In addition to that, AvePoint is 6.24 times more volatile than Science Technology Fund. It trades about -0.01 of its total potential returns per unit of risk. Science Technology Fund is currently generating about 0.34 per unit of volatility. If you would invest  3,031  in Science Technology Fund on May 1, 2025 and sell it today you would earn a total of  715.00  from holding Science Technology Fund or generate 23.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	80.65%
Values	Daily Returns

AvePoint  vs.  Science Technology Fund

AvePoint

Risk-Adjusted Performance

Very Weak

Over the last 90 days AvePoint has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, AvePoint is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Science Technology

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Science Technology Fund are ranked lower than 26 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Science Technology showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AvePoint and Science Technology

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

The idea behind AvePoint and Science Technology Fund 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.