Pair is strongly diverging away from the mean. High risk of further deviation.
Regime: STRONG_DIVERGENCE (low confidence)
Correlation: 0.81 · Cointegrated: yes
Z-score: -1.25 entry / -1.81 rolling
Half-life 2.0h · Hurst 0.90 · Hedge ratio 1.93
Pair volatility: 40.55%
Backtest: 61.54% win · Sharpe 1.75 · 1.46% return · 2.34% max drawdown
Pair Analysis: FARTCOIN / SOL
Statistical Diagnostics
- 1h Roll Z-Score: -1.81 (Snapshot: 1.4h old)
- 4h Roll Z-Score: -0.70 (Snapshot: 7.3h old)
- 1d Roll Z-Score: -1.35 (Snapshot: 2.0d old)
- Correlation: 0.81 (1h)
- Half-Life: 49h (1h timeframe)
- Hedge Weights (4h): 34.0% FARTCOIN / 66.0% SOL
Sentiment & Context
- FARTCOIN: Neutral. Community sentiment is muted with little momentum or active discussion.
- SOL: Bullish. Strong fundamentals driven by RWA volume and transaction activity; current price action is viewed as a healthy consolidation.
Analysis Note
- Mean Reversion: The pair is statistically "cheap" (negative z-score), suggesting FARTCOIN is currently undervalued relative to SOL based on historical spread behavior.
- Divergence Risk: Sentiment is currently divergent. While the statistical setup favors a mean-reversion trade (Long FARTCOIN / Short SOL), the bullish sentiment on SOL may sustain its outperformance, potentially keeping the spread wide or causing further divergence despite the statistical "cheapness."
- Execution: Both assets are available on Hyperliquid (Core/USDC). Ensure sufficient USDC collateral for both legs.
FARTCOIN
SOL