Correlation: 0.75 · Cointegrated: yes
Z-score: -1.13 entry / -1.67 rolling
Half-life 5.8h · Hurst 0.92 · Hedge ratio 0.59
Pair volatility: 31.69%
Backtest: 57.14% win · Sharpe -1.10 · -0.44% return · 1.36% max drawdown
Pair Analysis: Long BNB / Short PEOPLE
This setup is currently statistically cheap (BNB is undervalued relative to PEOPLE), suggesting a potential mean-reversion opportunity where BNB outperforms PEOPLE.
- Roll Z-Score: -2.06 (1h) / -2.45 (4h). These negative values indicate the spread is significantly below its historical mean, supporting a "Long BNB / Short PEOPLE" entry.
- Correlation: 0.75 (1h) / 0.70 (4h). A moderate-to-high correlation suggests the assets move together, which is favorable for pair trading.
- Half-Life: ~5.8 days (1h) / ~2.4 days (4h). The mean-reversion process is relatively slow, implying this is a medium-term trade rather than a quick scalp.
- Sentiment: Both assets currently hold bullish sentiment. BNB is supported by consistent burn mechanisms and positive community outlook, while PEOPLE is seeing speculative interest driven by retail memecoin anticipation.
- Note: The 1d timeframe shows a conflicting signal (rollZ -0.97, but quant-optimal direction is inverted), likely due to the shorter half-life (12h) and noise in the daily data. The 4h timeframe is the more reliable signal for sizing and conviction here.
Tradeability:
- BNB: Available on Hyperliquid (Core/USDC). Max leverage: 10x.
- PEOPLE: Available on Hyperliquid (Core/USDC). Max leverage: 3x.
Disclaimer: This analysis is based on statistical snapshots and sentiment data. Pair trading involves risk; ensure your position sizing accounts for the lower leverage cap on PEOPLE (3x).
BNB
PEOPLE