Pairs Trading Guides
Learn how to use the four statistical models for pairs trading with our comprehensive step-by-step guides. Each tutorial explains the concepts in simple terms and walks you through the practical implementation.
Ratio Model Guide
The simplest and most intuitive approach to pairs trading. Learn how to calculate price ratios, detect mean reversion, and identify trading opportunities using Z-scores.
OLS Spread Model Guide
Use linear regression to find optimal hedge ratios between stocks. This guide covers OLS regression, spread calculation, and statistical significance testing.
Kalman Filter Model Guide
Advanced adaptive filtering for dynamic market conditions. Learn how Kalman filters continuously update hedge ratios and adapt to changing relationships between stocks.
Euclidean Distance Model Guide
Analyze standardized price movements and relative positioning. This guide explains how to use Z-score normalization and distance metrics for pairs trading.