Pair is strongly reverting towards the mean with accelerating velocity and stable volatility.
Regime: STRONG_REVERSION (high confidence)
Correlation: 0.79 · Cointegrated: yes
Z-score: -2.46 entry / -1.69 rolling
Half-life 5.8h · Hurst 0.89 · Hedge ratio 1.56
Pair volatility: 29.92%
Backtest: 70.00% win · Sharpe 1.83 · 1.01% return · 0.79% max drawdown
Pair Analysis: Long BB / Short ZEN
- Roll Z-Score: -1.69 (1h), -2.09 (4h), -1.71 (1d)
- Correlation: 0.79 (1h), 0.77 (4h)
- Cointegration: True (1h, 1d); False (4h)
- Hedge Ratio (4h): 1.336 (Long 1.336 BB / Short 1 ZEN)
Analysis:
- Directional Alignment: Your stated direction (Long BB / Short ZEN) is quant-optimally aligned with the current negative Z-score, which indicates the spread is statistically "cheap" (BB is undervalued relative to ZEN).
- Sentiment Risk: While the statistical setup is strong, note that ZEN sentiment is currently bullish due to staking catalysts and institutional backing. This creates a potential headwind for the short leg of your trade.
- Execution: Both assets are available on Hyperliquid (BB via
xyz deployer, ZEN via core). Ensure you have sufficient USDC collateral for both legs.
BB
ZEN