Correlation: 0.75 · Cointegrated: yes
Z-score: 0.78 entry / 3.84 rolling
Half-life 1.3h · Hurst 0.88 · Hedge ratio 0.66
Pair volatility: 28.26%
Backtest: 75.00% win · Sharpe 2.59 · 2.00% return · 2.08% max drawdown
Pair Analysis: Long SAND / Short PEOPLE
This pair is currently the #1 active signal on Hyperliquid, indicating a strong statistical mean-reversion opportunity.
- Roll Z-Score: 6.13 (1h) / 3.78 (4h). These are highly elevated, confirming that PEOPLE is statistically "rich" relative to SAND in the short-to-medium term.
- Correlation: 0.75 (1h).
- Cointegration: True.
- Half-Life: ~31 hours (1h timeframe).
- Hedge Weights (4h): 32.9% SAND / 67.1% PEOPLE (sizing on 4h).
Analysis:
- Technical Setup: The extreme positive z-score (6.13) suggests PEOPLE has significantly outperformed SAND recently, creating a divergence that is statistically likely to mean-revert. The 1d z-score (-0.02) is neutral, suggesting this is a short-term volatility play rather than a long-term structural shift.
- Sentiment: SAND is currently facing bearish sentiment with a structural downtrend; PEOPLE lacks specific sentiment drivers. This trade is purely a statistical divergence play rather than a fundamental directional bet.
- Conviction: High. This is a fresh, active signal with strong cointegration and a clear statistical edge.
Note: The 1h/4h z-scores are snapshots; verify recent price action to ensure the divergence hasn't already begun to close.
SAND
PEOPLE