Correlation: 0.71 · Cointegrated: yes
Z-score: 2.47 entry / 0.99 rolling
Half-life 0.9h · Hurst 0.92 · Hedge ratio 0.40
Pair volatility: 33.30%
Backtest: 86.67% win · Sharpe 5.94 · 4.43% return · 1.30% max drawdown
Pair Analysis: Long ZK / Short PEOPLE
- Roll Z-Score: 1.32 (1h), 2.11 (4h), 1.76 (1d)
- Note: Positive Z-scores indicate PEOPLE is currently "rich" relative to ZK. Your chosen direction (Long ZK / Short PEOPLE) aligns with the quant-optimal mean-reversion strategy.
- Correlation: 0.71 (1h)
- Hedge Weights (4h): 45.9% ZK / 54.1% PEOPLE
- Sentiment:
- ZK: Bearish; sentiment is weighed down by recurring monthly supply unlocks (1.78% of market cap) and thin liquidity.
- PEOPLE: Bearish; sentiment remains weak.
- Technical Context: The pair shows strong mean-reversion potential, with the 4h Z-score (2.11) suggesting a significant divergence. However, both assets carry bearish sentiment, which may limit the upside for the "Long" leg (ZK) despite the statistical richness of the "Short" leg (PEOPLE).
Disclaimer: This analysis is for informational purposes only and does not constitute financial advice.
ZK
PEOPLE