Pair is still diverging, but the momentum is slowing. A potential reversal candidate.
Regime: PEAK_DIVERGENCE (medium confidence)
Correlation: 0.61 · Cointegrated: yes
Z-score: 1.43 entry / 1.77 rolling
Half-life 1.0h · Hurst 0.87 · Hedge ratio 1.04
Pair volatility: 36.50%
Backtest: 66.67% win · Sharpe 0.31 · 0.06% return · 0.83% max drawdown
Pair Analysis: Long LRCX / Short EWY
Pair Statistics
- Roll Z-Score: 1.77 (1h) / 1.48 (4h) / 0.55 (1d)
- Interpretation: The positive Z-score indicates EWY is currently rich relative to LRCX. Your proposed direction (Long LRCX / Short EWY) aligns with the mean-reversion signal, aiming to capture the spread narrowing as the assets revert to their historical relationship.
- Correlation: 0.61 (1h) / 0.63 (4h) / 0.82 (1d)
- Half-Life: ~23h (1h) / ~8h (4h)
- Hedge Weights (4h): 44.0% LRCX / 56.0% EWY
Analysis & Sentiment
- Alignment: Your trade direction (Long LRCX / Short EWY) is quant-optimal, effectively selling the relatively "rich" asset (EWY) and buying the "cheap" asset (LRCX) to profit from mean reversion.
- Sentiment: No specific sentiment data is available for these assets at this time.
- Execution Note: This pair involves two different DEX deployers:
- LRCX: Listed on
para (USDC collateral).
- EWY: Listed on
xyz (USDC collateral).
- Requirement: Ensure you have sufficient USDC in your account to cover both legs, as these positions are not cross-margined across different DEX deployers unless your account mode specifically supports it.
Disclaimer: Z-scores are snapshots and may lag intraday price action. Verify current spot prices before execution.
LRCX
EWY