Pair is strongly reverting towards the mean with accelerating velocity and stable volatility.
Regime: STRONG_REVERSION (high confidence)
Correlation: 0.62 · Cointegrated: yes
Z-score: -1.22 entry / -3.21 rolling
Half-life 2.3h · Hurst 0.89 · Hedge ratio 0.34
Pair volatility: 36.88%
Backtest: 66.67% win · Sharpe 2.08 · 1.90% return · 2.30% max drawdown
Pair Analysis: Long AXS / Short ZEN
- Roll Z-Score (1h): -3.21 (Snapshot: 1.2h old)
- Roll Z-Score (4h): -4.26 (Snapshot: 7.2h old)
- Correlation: 0.62 (1h)
- Cointegration: True (1h)
- Hedge Weights (4h): 63.6% AXS / 36.4% ZEN
Analysis & Sentiment
- Statistical Setup: The pair is currently showing a deeply negative z-score across the 1h and 4h timeframes, indicating that AXS is statistically "cheap" relative to ZEN. The 1h cointegration signal (True) provides a solid foundation for a mean-reversion trade, suggesting the spread is likely to tighten as AXS potentially outperforms or ZEN underperforms.
- Sentiment: Sentiment for ZEN is bearish, driven by sparse social engagement and a weak technical structure. No specific sentiment data is available for AXS, implying it is currently trading primarily on broader market beta rather than idiosyncratic news.
- Note: The user-specified direction (Long AXS / Short ZEN) is aligned with the quant-optimal direction derived from the z-score heuristic. Given the deeply negative z-scores, this setup is currently positioned to capture a potential mean reversion of the spread.
AXS
ZEN