Statistical Arbitrage in Algorithmic Trading: A Quantitative Approach

This strategy leverages advanced statistical models and real-time data analysis to identify mean-reverting relationships between asset prices or their spreads.

Statistical arbitrage (stat arb) is a sophisticated quantitative trading strategy that seeks to exploit temporary mispricings between related assets. This strategy leverages advanced statistical models and real-time data analysis to identify mean-reverting relationships between asset prices or their spreads. Stat arb strategies often involve market-neutral positions, which are structured to profit from the relative movements between two or more correlated assets while minimizing exposure to overall market risk.