Pair is strongly diverging away from the mean. High risk of further deviation.
Regime: STRONG_DIVERGENCE (low confidence)
Correlation: 0.62 · Cointegrated: yes
Z-score: -1.94 entry / -1.51 rolling
Half-life 5.8h · Hurst 0.93 · Hedge ratio 0.58
Pair volatility: 39.55%
Backtest: 77.78% win · Sharpe 1.07 · 0.88% return · 2.19% max drawdown
Pair Analysis: Long DYM / Short ETH
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Roll Z-Scores (Snapshot):
- 1h: -1.51 (DYM cheap vs ETH)
- 4h: 1.61 (DYM rich vs ETH)
- 1d: -2.20 (DYM cheap vs ETH)
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Correlation: 0.62 (1h)
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Sentiment:
- DYM: Bearish (persistent token dilution, lack of community engagement).
- ETH: Bullish (momentum building, consistent fee burn).
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Note: The trade direction (Long DYM / Short ETH) is statistically supported by the 1h and 1d z-scores (mean reversion), but conflicts with the 4h z-score and strongly opposes current sentiment. You are effectively longing a bearish asset against a bullish one, relying purely on short-term statistical mean reversion.
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Venue Status:
- DYM: Listed on Hyperliquid (max 3x leverage).
- ETH: Listed on Hyperliquid (max 25x leverage).
DYM
ETH