Correlation: 0.80 · Cointegrated: yes
Z-score: -1.09 entry / -4.52 rolling
Half-life 1.3h · Hurst 0.93 · Hedge ratio 0.83
Pair volatility: 31.83%
Backtest: 66.67% win · Sharpe 0.57 · 0.29% return · 1.55% max drawdown
### Pair Analysis: Long EWY / Short SMSN
* **Roll Z-Score (1h):** -4.31 (EWY is statistically cheap relative to SMSN on a short-term basis)
* **Roll Z-Score (4h):** 1.10 (EWY is slightly rich relative to SMSN on a medium-term basis)
* **Roll Z-Score (1d):** 0.30 (EWY is slightly rich relative to SMSN on a long-term basis)
* **Correlation:** 0.80 (1h) / 0.84 (4h) / 0.93 (1d)
* **Hedge Ratio (4h):** 0.803 (sizing on 4h weights)
**Analysis & Remarks:**
* **Divergent Signals:** The 1h timeframe shows a strong mean-reversion signal favoring your direction (Long EWY / Short SMSN), as EWY appears significantly oversold relative to SMSN. However, the 4h and 1d timeframes show positive z-scores, suggesting that on a longer horizon, EWY is actually slightly rich relative to SMSN.
* **Sentiment:** No specific sentiment data is available for these assets.
* **Execution Note:** Both assets are available on Hyperliquid via the `xyz` deployer. Ensure you have sufficient USDC collateral, as these are `xyz` listings.
* **Risk:** The trade is currently running against the 4h/1d mean-reversion pressure. The 1h signal is the primary driver for the current entry, but the multi-timeframe divergence suggests high volatility in the spread.
EWY
SMSN