Pair is strongly diverging away from the mean. High risk of further deviation.
Regime: STRONG_DIVERGENCE (low confidence)
Correlation: 0.64 · Cointegrated: yes
Z-score: -7.16 entry / -8.27 rolling
Half-life 0.5h · Hurst 0.83 · Hedge ratio 0.94
Pair volatility: 36.55%
Backtest: 78.57% win · Sharpe 0.33 · 0.11% return · 1.43% max drawdown
Pair Analysis: Long MU / Short TER
Statistical Diagnostics
- Roll Z-Score: -8.27 (1h) / -2.56 (4h)
- Interpretation: The negative z-score indicates MU is currently "cheap" relative to TER. The extreme 1h z-score (-8.27) suggests a significant statistical divergence, potentially signaling an oversold condition for MU relative to TER.
- Correlation: 0.64 (1h) / 0.75 (4h)
- Cointegration: True
- Half-Life: 12h (1h) / 2h (4h)
- Hedge Weights (4h): 48.9% MU / 51.1% TER
Sentiment & Context
- MU (Long): Bullish. Micron recently reported strong Q3 earnings with blowout guidance and multiyear contracts, suggesting the recent price action may be a technical overreaction.
- TER (Short): Neutral/No specific sentiment data available.
Setup Remark
This setup is statistically compelling, with the negative z-score indicating a mean-reversion opportunity where MU is undervalued relative to TER. The bullish fundamental backdrop for MU (earnings beat/guidance) provides a strong catalyst for the long leg, aligning with the statistical "cheapness" of the pair.
Note: MU and TER are listed on different deployers (xyz:MU and para:TER). Ensure your account mode supports cross-DEX margin, or ensure both collateral stables (USDC) are funded in the respective spot wallets for each deployer.
MU
TER