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: -1.32 entry / -2.13 rolling
Half-life 2.3h · Hurst 0.91 · Hedge ratio 1.89
Pair volatility: 40.53%
Backtest: 55.56% win · Sharpe -0.00 · -0.06% return · 2.98% max drawdown
Pair Analysis: FARTCOIN / SOL
- Roll Z-Score (1h): -2.13 (FARTCOIN is statistically "cheap" relative to SOL on a 1h basis)
- Roll Z-Score (4h): 0.08 (Neutral)
- Roll Z-Score (1d): -1.14 (FARTCOIN is statistically "cheap" relative to SOL on a 1d basis)
- Correlation: 0.81 (1h)
- Hedge Weights (4h): 34.8% FARTCOIN / 65.2% SOL
Trade Context & Sentiment:
- Sentiment Divergence: You are attempting a mean-reversion trade (Long FARTCOIN / Short SOL) against a backdrop of divergent sentiment. SOL currently holds a bullish outlook driven by institutional demand and tokenized-asset volume, while FARTCOIN sentiment is muted and stagnant.
- Technical Setup: The 1h z-score of -2.13 suggests FARTCOIN is significantly oversold relative to SOL in the short term, supporting the "Long FARTCOIN" side of your trade. However, the 4h z-score is neutral (0.08), indicating that the short-term mean reversion may lack broader, higher-timeframe statistical support.
- Execution Note: Both assets are available on Hyperliquid (core/USDC). Ensure you are comfortable betting against the current bullish momentum of SOL, as the trade relies on FARTCOIN outperforming or SOL mean-reverting from its current strength.
FARTCOIN
SOL