Pair is strongly diverging away from the mean. High risk of further deviation.
Regime: STRONG_DIVERGENCE (low confidence)
Correlation: 0.64 · Cointegrated: yes
Z-score: 1.22 entry / 1.54 rolling
Half-life 3.7h · Hurst 0.90 · Hedge ratio 0.29
Pair volatility: 44.72%
Backtest: 53.85% win · Sharpe -0.61 · -0.60% return · 1.41% max drawdown
Pair Analysis: Long RENDER / Short INJ
- Roll Z-Score (1h): 1.54 (Snapshot: ~1.3h old)
- Roll Z-Score (4h): 1.14 (Snapshot: ~5.3h old)
- Correlation: 0.64 (1h)
- Cointegration: True (1h)
- Hedge Ratio (4h): 0.051 (Sizing: 4.8% RENDER / 95.2% INJ)
- Hedge Ratio (1d): 0.553 (Sizing: 35.6% RENDER / 64.4% INJ)
Sentiment & Context
- RENDER: Bullish. RNP-023 governance passing to onboard ~60K GPUs is a structural catalyst for network capacity and token burns.
- INJ: Bullish.
- Setup: The positive z-score (1.54) indicates INJ is currently rich relative to RENDER. The trade (Long RENDER / Short INJ) aligns with a mean-reversion strategy to capture this divergence.
Notes
- Sizing Divergence: 4h and 1d hedge weights differ significantly (4.8%/95.2% vs 35.6%/64.4%). 4h weights are recommended for sizing, but the skew suggests high sensitivity to the timeframe chosen.
- Execution: Both assets are available on Hyperliquid (Core/USDC).
RENDER
INJ