Pair is strongly diverging away from the mean. High risk of further deviation.
Regime: STRONG_DIVERGENCE (low confidence)
Correlation: 0.73 · Cointegrated: yes
Z-score: -1.37 entry / -1.88 rolling
Half-life 1.5h · Hurst 0.94 · Hedge ratio 0.58
Pair volatility: 28.79%
Backtest: 58.33% win · Sharpe -0.12 · -0.12% return · 1.21% max drawdown
Pair Analysis: Long BB / Short YGG
- Roll Z-Score (1h): -1.88
- Roll Z-Score (4h): -2.81
- Correlation: 0.73 (1h)
- Half-Life: 12h (4h timeframe)
- Hedge Weights (4h): 72.3% BB / 27.7% YGG
Analysis & Sentiment
- Statistical Setup: The pair shows a strong mean-reversion signal on shorter timeframes (1h/4h), with deep negative z-scores indicating that BB is currently "cheap" relative to YGG. The 4h half-life of 12 hours suggests a relatively fast reversion window.
- Sentiment: YGG is currently facing significant bearish pressure due to recent operational restructuring (layoffs, shutdown of publishing arm) and a looming forced unstaking deadline on July 31, which is expected to drive near-term selling. The market views its pivot to AI with skepticism.
- Trade Note: The user-selected direction (Long BB / Short YGG) is aligned with the quant-optimal direction derived from the 1h and 4h z-scores.
Venue & Constraints
- BB:
xyz:BB (Max 10x leverage)
- YGG:
YGG (Max 3x leverage)
- Note: Both assets are tradeable on Hyperliquid. Ensure sufficient collateral for both legs, as they may reside on different deployers.
BB
YGG