Examining linearity between two stocks – linear regression and interpreting results.
How do you conclude that a pair of stocks move together?
Correlation, spreads and co-integration.
Read: Finding Pairs to Trade
Hedge ratios, spreads and significance.
A pair trading strategy
A simple trading strategy: buy the spread if it is one standard deviation below the average and sell the spread if its is one standard deviation above the average.
Pair trading scanner
A ready-made list of pairs to trade. Refreshed once an hour.
WhatsApp us at +91-80-2665-0232