Pair is strongly diverging away from the mean. High risk of further deviation.
Regime: STRONG_DIVERGENCE (low confidence)
Correlation: 0.71 · Cointegrated: yes
Z-score: -1.49 entry / -3.37 rolling
Half-life 0.9h · Hurst 0.89 · Hedge ratio 0.43
Pair volatility: 30.96%
Backtest: 62.50% win · Sharpe 3.62 · 0.48% return · 0.72% max drawdown
Pair Analysis: Long LRCX / Short MRVL
- Status: Both assets are tradeable on Hyperliquid (LRCX on
para, MRVL on xyz).
- Roll Z-Score (1h): -3.37 (LRCX is statistically cheap relative to MRVL on a short-term basis).
- Roll Z-Score (4h): 0.85 (LRCX is statistically rich relative to MRVL on a medium-term basis).
- Correlation: 0.71 (1h) / 0.80 (4h).
- Half-Life: ~21h (1h) / ~13h (4h).
Analysis Note:
There is a significant divergence between the 1h and 4h timeframes. The 1h z-score of -3.37 indicates a strong mean-reversion signal favoring your "Long LRCX / Short MRVL" direction (suggesting LRCX is currently undervalued relative to MRVL). However, the 4h z-score of 0.85 suggests the opposite, indicating that on a slightly longer horizon, LRCX is actually rich relative to MRVL.
Given the extreme 1h z-score, the setup is currently driven by short-term volatility. Ensure you are comfortable with the conflicting medium-term signal before sizing. No specific sentiment data is available for these assets at this time.
LRCX
MRVL