Pair is strongly diverging away from the mean. High risk of further deviation.
Regime: STRONG_DIVERGENCE (low confidence)
Correlation: 0.67 · Cointegrated: yes
Z-score: 1.39 entry / 1.97 rolling
Half-life 1.1h · Hurst 0.86 · Hedge ratio 1.06
Pair volatility: 36.87%
Backtest: 79.17% win · Sharpe 3.01 · 2.16% return · 1.09% max drawdown
Pair Analysis: WCT / BB
- Roll Z-Score (1h): 1.97 (BB rich vs WCT)
- Correlation: 0.67
- Half-Life: 27h (1.1d)
- Hedge Ratio (4h): 0.922 (Sizing: 48% WCT / 52% BB)
- Venue Status:
- WCT: Listed on Hyperliquid (Core)
- BB: Listed on Hyperliquid (xyz)
Trade Context & Sentiment
- Statistical Setup: The 1h Z-score of 1.97 indicates the spread is currently extended, with BB trading rich relative to WCT. The trade (Long WCT / Short BB) aligns with a mean-reversion strategy.
- Sentiment Conflict: While the statistical setup supports the trade, WCT sentiment is Bearish due to a structural supply overhang from the upcoming August 15 unlock. This fundamental headwind may cap the upside of the Long WCT leg, potentially undermining the mean-reversion thesis.
- Execution Note: Both assets are tradeable on Hyperliquid, but they reside on different deployers (Core vs. xyz). Ensure sufficient USDC collateral is available in your unified account to cover both legs.
WCT
BB