Correlation: 0.73 · Cointegrated: yes
Z-score: -1.12 entry / -1.55 rolling
Half-life 2.5h · Hurst 0.89 · Hedge ratio 1.21
Pair volatility: 32.20%
Backtest: 61.54% win · Sharpe -2.73 · -2.52% return · 4.26% max drawdown
Pair Analysis: Long BB / Short SAND
This setup is a mean-reversion play targeting the statistical divergence between BlackBerry (BB) and The Sandbox (SAND).
- Roll Z-Score: -2.00 (1h) / -1.26 (4h)
- Interpretation: The negative z-score indicates that BB is currently "cheap" relative to SAND compared to their historical relationship. The 1h z-score of -2.00 suggests a significant deviation, supporting the Long BB / Short SAND direction.
- Correlation: 0.73 (1h)
- Cointegration: True (1h/4h)
- Half-Life: 61h (1h) / 18h (4h)
- Note: The 4h half-life (18h) is the more actionable timeframe for this mean-reversion, suggesting the spread tends to revert within ~18 hours.
Sentiment & Technical Context
- SAND (Bearish): Sentiment is currently bearish, characterized by thin social chatter and price action trading below major moving averages with rising sell volume. This aligns with the "Short SAND" leg of your trade.
- BB (Neutral/No Data): No specific sentiment data is available for BB, making this leg primarily a statistical play based on the relative valuation gap against SAND.
Trade Considerations
- Alignment: The 1h and 4h z-scores strongly support the Long BB / Short SAND direction.
- Execution: BB is listed on the
xyz deployer (USDC collateral), and SAND is on the core deployer (USDC collateral). Both are tradeable on Hyperliquid.
- Risk: The 1d z-score (-0.71) is less extreme than the shorter timeframes, suggesting that while the immediate divergence is sharp, the longer-term trend is less decisive. Ensure your stop-loss accounts for the 18h half-life volatility.
BB
SAND