Pair is strongly diverging away from the mean. High risk of further deviation.
Regime: STRONG_DIVERGENCE (low confidence)
Correlation: 0.84 · Cointegrated: yes
Z-score: 1.21 entry / 2.10 rolling
Half-life 2.9h · Hurst 0.92 · Hedge ratio 0.40
Pair volatility: 18.21%
Backtest: 47.62% win · Sharpe -4.05 · -0.71% return · 0.85% max drawdown
Pair Analysis: SILVER / GOLD
- Direction: Long SILVER / Short GOLD
- Roll Z-Score (1h): 2.10 (Snapshot: ~1.3h old)
- Roll Z-Score (4h): 2.04 (Snapshot: ~4.3h old)
- Correlation: 0.85 (4h)
- Half-Life: 18h (4h timeframe)
Setup Remark:
The positive Z-score (2.10 on 1h, 2.04 on 4h) indicates that GOLD is currently statistically "rich" relative to SILVER. Your chosen direction (Long SILVER / Short GOLD) aligns with a mean-reversion strategy, betting that the spread will contract as GOLD reverts toward its historical relationship with SILVER. The 4h half-life of 18 hours suggests a relatively quick mean-reversion window. No specific sentiment data is available for these assets.
Note: Z-scores are snapshots and do not reflect real-time price action. Verify recent intraday moves before entry.
SILVER
GOLD