Statistical pair trading is a market-neutral strategy that profits from the relative price movements of two related stocks. It involves going long on an underperforming stock and shorting an outperforming stock to capture the spread reversion.
We use Ordinary Least Squares (OLS) regression and Augmented Dickey-Fuller (ADF) tests on 200-day historical price data for 168+ NSE F&O stocks.
What is Statistical Pair Trading in the NSE?
How does the Cointegration Test (ADF) work?
What is a Z-Score and how is it used for entry/exit signals?