Pair is strongly diverging away from the mean. High risk of further deviation.
Regime: STRONG_DIVERGENCE (low confidence)
Correlation: 0.79 · Cointegrated: yes
Z-score: -1.87 entry / -3.38 rolling
Half-life 1.9h · Hurst 0.89 · Hedge ratio 1.33
Pair volatility: 30.03%
Backtest: 69.23% win · Sharpe -0.47 · -0.47% return · 2.20% max drawdown
Pair Analysis: Long YGG / Short ZEN
Statistical Snapshot
- 1h Roll Z-Score: -3.38 (YGG is statistically "cheap" relative to ZEN)
- 4h Roll Z-Score: -1.34
- 1d Roll Z-Score: -0.90
- Correlation: 0.79 (1h)
- Hedge Ratio (4h): 1.25 (Short 1.25 units of ZEN for every 1 unit of YGG)
Sentiment & Context
- YGG: Bearish. The asset faces structural headwinds, including persistent token unlocks and a pivot away from its core GameFi model, which has dampened investor confidence.
- ZEN: Bearish. Lacks internal catalysts and is currently trading as a beta-play, with technicals showing a dominant bearish structure.
- Remark: This is a relative-value mean-reversion trade. The strongly negative 1h z-score (-3.38) suggests YGG has diverged significantly to the downside against ZEN in the short term. While both assets share a bearish sentiment, the trade relies on the statistical expectation that YGG will outperform (or fall less than) ZEN as the spread mean-reverts. Given the bearish sentiment on both legs, this setup is best treated as a tactical spread trade rather than a directional conviction play.
Tradeability
- YGG: Available on Hyperliquid (Max 3x leverage)
- ZEN: Available on Hyperliquid (Max 5x leverage)
YGG
ZEN