Pair is still diverging, but the momentum is slowing. A potential reversal candidate.
Regime: PEAK_DIVERGENCE (medium confidence)
Correlation: 0.77 · Cointegrated: yes
Z-score: -1.26 entry / -1.59 rolling
Half-life 2.4h · Hurst 0.92 · Hedge ratio 0.87
Pair volatility: 31.18%
Backtest: 67.86% win · Sharpe -0.01 · -0.05% return · 2.68% max drawdown
Pair Analysis: Long PENGU / Short ZEN
- Roll Z-Score: -1.59 (1h), -1.11 (4h)
- Interpretation: The negative z-score indicates PENGU is currently "cheap" relative to ZEN on a mean-reversion basis.
- Correlation: 0.77 (1h), 0.76 (4h)
- Sentiment Alignment:
- PENGU: Bullish; technical structure favors a breakout above $0.00649.
- ZEN: Bearish; lacks internal catalysts and is dominated by a bearish SMA structure.
- Trade Conviction: High. The statistical mean-reversion signal (negative z-score) is strongly supported by the divergent sentiment (Bullish PENGU vs. Bearish ZEN).
Note: The 1h z-score snapshot is ~1.3 hours old; verify current price action before entry. The trade direction (Long PENGU / Short ZEN) is quant-optimal based on the current z-score sign.
PENGU
ZEN