Pairs Trading Lab

PHASE 6

Cointegration, hedge ratios, z-score signals and a full pair scanner.

Planned capabilities

›Pick two assets, view the scatter and rolling correlation, and fit a hedge ratio by OLS or rolling OLS.
›Engle-Granger cointegration with an ADF test on the residuals and a plain-language interpretation.
›Half-life of mean reversion from an AR(1) fit.
›Spread z-score signals with adjustable lookback, entry, exit and stop levels.
›Backtest with costs: spread chart with trade markers, per-trade P&L and equity curve.
›Pair scanner ranking every combination by ADF statistic and half-life, one click into the backtest.

Data readiness

datasets available in the workspace.

Status

This module is scaffolded and wired into the workspace. It will be built out in phase 6, using the shared math library and the datasets you generate or upload.