Pairs Trading
Statistical arbitrage through cointegration-based pairs trading with automated signal generation
Pair Discovery
Find cointegrated pairs from a list of symbols
Enter 3 or more symbols to discover cointegrated pairs
Discover pairs to see results
About Pairs Trading
Strategy
Pairs trading is a market-neutral strategy that exploits mean-reversion in the spread between two cointegrated assets. When the spread deviates significantly from its mean, we take positions expecting it to revert.
Key Concepts
- Cointegration: Statistical relationship where two assets move together long-term
- Hedge Ratio: Optimal ratio to maintain market neutrality
- Z-Score: Standardized measure of spread deviation
- Half-Life: Expected time for spread to revert to mean