Correlation: 0.78 · Cointegrated: yes
Z-score: 2.11 entry / 0.85 rolling
Half-life 3.5h · Hurst 0.89 · Hedge ratio 0.63
Pair volatility: 32.00%
Backtest: 76.47% win · Sharpe 0.68 · 0.43% return · 1.39% max drawdown
### Pair Analysis: Long STRK / Short PEOPLE
This setup is a statistical mean-reversion play betting on the relative underperformance of PEOPLE against STRK.
**Statistical Snapshot**
* **1h Roll Z-Score:** 1.30 (PEOPLE is rich relative to STRK)
* **4h Roll Z-Score:** 2.40
* **1d Roll Z-Score:** 0.81
* **Correlation:** 0.78 (1h)
* **Hedge Weights (4h):** 44.3% STRK / 55.7% PEOPLE
**Analysis**
* **Alignment:** Your chosen direction (Long STRK / Short PEOPLE) is **quant-optimal** based on the positive roll z-scores across all timeframes. You are effectively selling the "rich" leg (PEOPLE) and buying the "cheap" leg (STRK).
* **Sentiment Context:** Both assets currently carry bearish sentiment. STRK faces structural headwinds from supply unlocks, while PEOPLE lacks a clear bullish catalyst. This trade is a pure statistical divergence play rather than a directional conviction bet on either asset's fundamental strength.
* **Risk Note:** The 1h z-score snapshot is ~1.2 hours old. Given the high correlation (0.78), ensure the spread hasn't significantly compressed since the last data update before entry.
STRK
PEOPLE