In statistical arbitrage, there is a statistical mispricing of one or more assets based on the expected value of these assets. In this narrower sense, statistical arbitrage is often abbreviated as Stat Arb or StatArbStatistical Arbitrage and Its Use in FinanceStatistical arbitrage is the financial method of intentionally mispricing assets in order to show their expected value.
It is a term that is also used within the hedge fund industry to refer to high tech, short-term mean reversion strategies that deal with numerous securities with short holding periods. These securities usually have a complicated technology infrastructure that requires extensive computations and trading information.The Origin of Statistical Arbitrage Used statistical arbitrage trading strategy revisited Equity TradingStatistical arbitrage is often used as a trading strategy.
This method is highly quantitative and requires extensive computations, data mining and automated trading systems. To start viewing threads,select the forum that you want to visit from the selection below. Read about members in the Introduce Yourself forum, or make your way to Newbie Island. Just to refresh everyone that still looks at this thread. The original strategy with vitrite is to flawed and will not work long term.My strategy does work but in a different way.
You must use excel to normalize a set of data and then plot it so it shows the standard deviation of that currency. You repeat this process for a correlated currency and plot the.