Statistical Arbitrage Strategies
Explore and implement statistical arbitrage strategies such as pairs trading, mean-reversion, and cointegration analysis to exploit market inefficiencies.
4 courses
Master the fundamentals of drawing and analyzing trendlines to identify market directions and make structured trading decisions.
Build a clear mental model of how statistical arbitrage works — cointegration, mean reversion, Z-score signals, and the statistical assumptions that make or break these strategies.
Work through the full pipeline of a pairs trading strategy — from pair selection and spread construction to signal generation, backtesting, and transaction cost analysis.
Address the real long-term challenges of statistical arbitrage — relationship decay, regime shifts, expanding to multiple pairs, and building a sustainable execution framework.