Pair is strongly reverting towards the mean with accelerating velocity and stable volatility.
Regime: STRONG_REVERSION (high confidence)
Correlation: 0.69 · Cointegrated: yes
Z-score: 1.56 entry / 1.80 rolling
Half-life 5.8h · Hurst 0.93 · Hedge ratio 0.47
Pair volatility: 32.19%
Backtest: 66.67% win · Sharpe -0.68 · -0.48% return · 2.69% max drawdown
Pair Analysis: Long RENDER / Short ADA
- Roll Z-Score: 1.80 (1h/4h) — Indicates ADA is statistically "rich" relative to RENDER.
- Correlation: 0.69 (1h)
- Half-Life: ~5.8 days (1h)
- Sentiment Alignment: Strong. RENDER is benefiting from AI-sector tailwinds and structural supply-sink catalysts, while ADA is facing bearish pressure with negative funding rates and technical rejection at key resistance levels.
Remark:
This setup is currently well-aligned. The positive Z-score (1.80) suggests a mean-reversion opportunity where ADA is overextended relative to RENDER. The fundamental divergence—bullish sentiment for RENDER's AI-driven supply model versus bearish sentiment for ADA's current price action—provides a strong narrative tailwind for this pair trade. Note that the 1h/4h Z-scores are snapshots; verify current price action to ensure the spread hasn't already compressed significantly since the last update.
RENDER
ADA