Pair is strongly diverging away from the mean. High risk of further deviation.
Regime: STRONG_DIVERGENCE (low confidence)
Correlation: 0.75 · Cointegrated: yes
Z-score: 1.24 entry / 1.81 rolling
Half-life 1.2h · Hurst 0.87 · Hedge ratio 0.75
Pair volatility: 33.80%
Backtest: 73.91% win · Sharpe 2.60 · 1.61% return · 0.94% max drawdown
Pair Analysis: Long RENDER / Short ICP
- Roll Z-Score (1h): 1.81 (Primary signal; positive z-score indicates ICP is currently "rich" relative to RENDER, supporting the Long RENDER / Short ICP trade).
- Roll Z-Score (4h): 0.45
- Correlation: 0.75 (1h)
- Hedge Ratio (4h): 0.78 (Sizing: ~44% RENDER / ~56% ICP)
Setup Remark:
This setup is statistically and fundamentally aligned. The 1h z-score of 1.81 suggests the spread is currently stretched in favor of your direction (Long RENDER / Short ICP). Sentiment supports this: RENDER is benefiting from bullish governance catalysts (RNP-023), while ICP is exhibiting bearish momentum and market underperformance. The 1h signal is the strongest indicator here; monitor the 1h z-score for mean reversion as the primary trigger.
RENDER
ICP