Long ATOM / Short ZEN · 1h pair

Correlation: 0.63 · Cointegrated: yes
Z-score: -1.72 entry / -1.16 rolling
Half-life 5.8h · Hurst 0.90 · Hedge ratio 1.41
Pair volatility: 33.52%

Backtest: 57.14% win · Sharpe -2.00 · -1.25% return · 2.05% max drawdown

Pair Analysis: Long ATOM / Short ZEN

• Roll Z-Score (1h): -1.66 (ATOM is statistically cheap relative to ZEN)
• Correlation: 0.63 (1h)
• Cointegration: Confirmed
• Half-Life: ~5.8 days (1h timeframe)
• Hedge Ratio: 1.41 (1h) / 1.84 (4h)

Trade Context & Sentiment

• Mean Reversion: The negative z-score (-1.66) indicates that ATOM is currently trading at a discount relative to ZEN on a 1h basis, supporting a mean-reversion entry (Long ATOM / Short ZEN).
• Sentiment Divergence: This trade is a "value" play that directly opposes current market sentiment. ATOM is currently facing bearish pressure with a lack of near-term catalysts, while ZEN is exhibiting bullish momentum driven by upcoming staking rewards and institutional interest.
• Risk Note: While the statistical setup (z-score) supports the long-ATOM/short-ZEN direction, you are effectively fading the momentum of both assets. The trade relies on the spread mean-reverting despite the fundamental divergence in sentiment.

Execution Details

• Venue: Both assets are available on Hyperliquid (Core).
• Leverage: Max 5x for both assets.