Pairs Trading
Pairs Monitored
15
across 8 sectors
Active Signals
5
|Z| > 1.5
Entry Threshold
|Z| > 2.0
strong: |Z| > 2.5
Exit Threshold
|Z| < 0.5
mean reversion
All Pairs — Z-Score Analysis
| Pair | Z-Score | Half-Life | Signal |
|---|---|---|---|
| XOM/CVX | -1.91 | N/A | WATCH |
| KO/PEP | 1.54 | 169d | WATCH |
| GOOGL/META | 0.61 | 86d | NONE |
| V/MA | -0.6 | 229d | NONE |
| HD/LOW | 0.65 | N/A | NONE |
| DAL/UAL | -1.62 | 1422d | WATCH |
| AVGO/TXN | -1.46 | 54d | NONE |
| JPM/BAC | -1 | 1192d | NONE |
| CAT/DE | -0.36 | N/A | NONE |
| NEE/DUK | -0.87 | N/A | NONE |
| UNH/CVS | -2.3 | N/A | ENTRY |
| LIN/APD | 1.92 | N/A | WATCH |
| MCD/SBUX | -0.21 | 225d | NONE |
| PM/MO | 0.85 | N/A | NONE |
| RTX/LMT | 0.6 | 655d | NONE |
Methodology
Spread: log(priceA) − log(priceB) — 60-day lookback
Z-Score: (spread − 20d mean) / 20d stdev — measures divergence
Entry: |Z| > 2.0 — spread has diverged significantly
Direction: Z > 0 → short A, long B · Z < 0 → long A, short B
Exit: |Z| < 0.5 — spread has reverted to mean
Half-Life: Estimated days for spread to revert (negative = non-mean-reverting)