Pair is strongly diverging away from the mean. High risk of further deviation.
Regime: STRONG_DIVERGENCE (low confidence)
Correlation: 0.70 · Cointegrated: yes
Z-score: -1.73 entry / -2.83 rolling
Half-life 4.2h · Hurst 0.91 · Hedge ratio 1.62
Pair volatility: 36.26%
Backtest: 58.33% win · Sharpe 0.55 · 0.37% return · 1.36% max drawdown
Pair Analysis: FET / ZEN
- Roll Z-Score (1h): -2.83 (Snapshot ~1.3h old)
- Roll Z-Score (4h): -2.80 (Snapshot ~4.3h old)
- Correlation: 0.70 (1h)
- Hedge Ratio (4h): 1.69 (Sizing: 1.69 units of ZEN short per 1 unit of FET long)
- Cointegration: True (1h/4h)
Sentiment & Technical Remark:
The pair is currently showing a strong mean-reversion signal with a 1h Roll Z-Score of -2.83, indicating that FET is statistically "cheap" relative to ZEN. Both assets carry bullish sentiment—FET driven by whale accumulation and AI narrative strength, and ZEN supported by institutional backing and staking incentives. While both are trending, the significant negative z-score suggests the spread has stretched beyond typical bounds, favoring a Long FET / Short ZEN setup to capture the convergence. Note that the 1h/4h z-scores are snapshots; verify current price action before entry, as the high correlation (0.70) suggests they move in tandem, but the current divergence offers a tactical entry point.
FET
ZEN