Pair is strongly diverging away from the mean. High risk of further deviation.
Regime: STRONG_DIVERGENCE (low confidence)
Correlation: 0.69 · Cointegrated: yes
Z-score: -1.25 entry / -1.57 rolling
Half-life 1.5h · Hurst 0.88 · Hedge ratio 0.59
Pair volatility: 37.39%
Backtest: 69.57% win · Sharpe 2.62 · 1.85% return · 0.90% max drawdown
Pair Analysis: Long BB / Short BERA
This setup aligns with a mean-reversion strategy, as BB is currently trading at a discount relative to BERA.
- Roll Z-Score: -1.57 (1h) / -0.94 (4h)
- Interpretation: A negative z-score indicates BB is statistically "cheap" relative to BERA. The 1h z-score of -1.57 suggests a strong mean-reversion signal.
- Correlation: 0.69 (1h/4h)
- Cointegration: True (1h/4h)
- Half-Life: 36h (1h) / 12h (4h)
- Sentiment:
- BERA: Bearish. Market sentiment is negative due to concerns over the PoL Next overhaul, fresh all-time lows, and a significant supply overhang.
- BB: No specific sentiment data available.
Remark:
The trade is technically supported by a negative z-score, suggesting BB is undervalued against BERA. The bearish sentiment surrounding BERA provides a fundamental tailwind for the short leg of this pair. Note that the 1h z-score is ~1.3 hours old; verify recent price action to ensure the spread hasn't already mean-reverted significantly.
- Venue Status:
- BB: Listed on Hyperliquid (
xyz:BB, max 10x leverage).
- BERA: Listed on Hyperliquid (
BERA, max 5x leverage).
BB
BERA