Pair is strongly diverging away from the mean. High risk of further deviation.
Regime: STRONG_DIVERGENCE (low confidence)
Correlation: 0.69 · Cointegrated: yes
Z-score: -2.04 entry / -4.89 rolling
Half-life 1.0h · Hurst 0.87 · Hedge ratio 1.03
Pair volatility: 37.07%
Backtest: 76.47% win · Sharpe 4.96 · 2.12% return · 1.14% max drawdown
Pair Analysis: Long xyz:DRAM / Short para:LRCX
- 1h Roll Z-Score: -4.89 (Strong mean-reversion signal: DRAM is statistically cheap vs LRCX on the 1h timeframe).
- 4h Roll Z-Score: 0.26 (Neutral).
- 1d Roll Z-Score: 0.83 (Slightly rich).
- Correlation: 0.69 (1h) to 0.85 (1d).
- Hedge Ratio (4h): 1.015 (Sizing: ~50% / 50%).
Technical Remark:
The setup shows a significant multi-timeframe divergence. The 1h timeframe indicates a strong "cheap" signal for DRAM relative to LRCX, supporting your long-DRAM/short-LRCX bias. However, the 4h and 1d timeframes are neutral-to-rich, suggesting the 1h move may be a localized deviation rather than a broader trend reversal.
Execution Note:
- Deployers:
xyz:DRAM and para:LRCX reside on different Hyperliquid deployers. Ensure you have the required collateral (USDC) funded in your spot account for both, as these positions are not cross-margined across different DEXes.
- Sentiment/News: No specific sentiment data is currently available for these assets. Monitor sector-specific semiconductor news, as the high correlation (0.85 on 1d) suggests both assets are heavily driven by broader industry factors.
DRAM
LRCX