Pair is strongly diverging away from the mean. High risk of further deviation.
Regime: STRONG_DIVERGENCE (low confidence)
Correlation: 0.68 · Cointegrated: yes
Z-score: 1.87 entry / 2.06 rolling
Half-life 1.4h · Hurst 0.88 · Hedge ratio 0.46
Pair volatility: 34.16%
Backtest: 88.89% win · Sharpe 6.53 · 4.80% return · 1.31% max drawdown
Pair Analysis: ZK / PEOPLE
- Roll Z-Score (1h): 2.06 (PEOPLE is rich relative to ZK)
- Roll Z-Score (4h): 1.67 (PEOPLE is rich relative to ZK)
- Correlation: 0.68 (1h)
- Hedge Ratio (4h): 0.36 (Long ZK / Short PEOPLE)
Remark:
This setup is currently aligned with mean-reversion signals on the 1h and 4h timeframes, which indicate that PEOPLE is statistically rich relative to ZK. The 1h z-score of 2.06 suggests a significant divergence, supporting the "Long ZK / Short PEOPLE" trade as a mean-reversion play. However, note that the 1d z-score is negative (-0.44), indicating a longer-term divergence that contradicts the shorter-term setup.
Sentiment Context:
- ZK: Bearish sentiment due to ongoing structural supply overhang from monthly token unlocks.
- PEOPLE: No clear sentiment data available.
Note: The 1h/4h z-scores are snapshots; verify recent price action as these assets can be volatile.
ZK
PEOPLE