Correlation: 0.80 · Cointegrated: yes
Z-score: 1.91 entry / 0.96 rolling
Half-life 4.1h · Hurst 0.91 · Hedge ratio 0.48
Pair volatility: 21.88%
Backtest: 72.73% win · Sharpe -0.10 · -0.10% return · 1.90% max drawdown
### Pair Analysis: Long SAND / Short LINK
* **Roll Z-Score:** 1.63 (1h) / 1.63 (4h) / 2.10 (1d)
* *Interpretation:* The positive z-score indicates that LINK is currently "rich" relative to SAND. Your chosen direction (Long SAND / Short LINK) is **quant-optimally aligned** with this mean-reversion signal.
* **Correlation:** 0.80 (Strong)
* **Half-Life:** 29h (4h timeframe) — suggests a moderate mean-reversion horizon.
* **Hedge Weights (4h):** 38.4% SAND / 61.6% LINK
### Sentiment & Technical Context
* **SAND (Bearish):** Sentiment is weighed down by the cooling metaverse narrative and persistent concerns regarding insider token unlocks creating sell-side overhang.
* **LINK (Bullish):** Sentiment is supported by structural adoption via CCIP integrations and significant exchange outflows, which typically signal tightening liquid supply and strong holder conviction.
### Summary
This setup is statistically and fundamentally aligned. You are effectively fading the relative strength of LINK against a fundamentally weaker SAND. The positive z-score confirms LINK is extended relative to its historical spread with SAND, and the sentiment divergence (Bullish LINK vs. Bearish SAND) provides a strong macro tailwind for this mean-reversion trade.
SAND
LINK