Pair is strongly reverting towards the mean with accelerating velocity and stable volatility.
Regime: STRONG_REVERSION (high confidence)
Correlation: 0.73 · Cointegrated: yes
Z-score: -1.43 entry / -2.14 rolling
Half-life 1.5h · Hurst 0.91 · Hedge ratio 1.10
Pair volatility: 27.42%
Backtest: 65.22% win · Sharpe 1.42 · 1.11% return · 1.71% max drawdown
Pair Analysis: Long SAND / Short SUPER
- Roll Z-Score (1h): -2.14 (SAND is statistically cheap relative to SUPER)
- Roll Z-Score (4h): -4.21
- Correlation: 0.73 (1h)
- Hedge Weights (4h): 50.3% SAND / 49.7% SUPER
Analysis & Sentiment:
- Statistical Signal: The pair is showing a strong mean-reversion signal. The negative z-scores across all timeframes (1h, 4h, 1d) indicate that SAND is currently undervalued relative to SUPER based on historical price relationships.
- Sentiment Divergence: There is a notable conflict between the quantitative signal and market sentiment. While the stats suggest a "buy cheap/sell expensive" setup, sentiment is currently Bearish for SAND (structural downtrend) and Bullish for SUPER (institutional interest/utility).
- Trade Note: This is a classic "value trap" setup. The statistical mean reversion (Long SAND / Short SUPER) is fighting the fundamental trend (Bearish SAND / Bullish SUPER). If you enter this trade, you are betting that the statistical spread will tighten despite the divergent sentiment, rather than betting on a directional reversal of the underlying assets.
Assets are tradeable on Hyperliquid (Core).
SAND
SUPER