Advanced Quantitative Analysis for Stock Pairs

Discover complex mathematical relationships in financial markets through interactive visualizations, statistical analysis, and backtesting tools designed for modern traders and analysts.

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PAIRS TRADING: Finding stocks that move together and taking a long position in one stock and a short position in another stock with a high positive correlation, profiting from their difference.

Powerful Analytics Features

Comprehensive tools for quantitative finance analysis, from basic price tracking to advanced statistical modeling.

2D Price Analysis
Track price trajectories and identify baseline trends with advanced charting capabilities.
Z-Score Detection
Detect deviations in return differences to spot potential trading signals when |z| > 2.
3D Distribution
Visualize joint probability of returns with Gaussian ellipsoids reflecting correlation strength.
Rolling Correlation
Compute dynamic correlations over multiple time windows (30, 60, 90 days) for trend analysis.
Backtesting Engine
Simulate trading outcomes to estimate theoretical profitability with historical data.
Real-time Analytics
Get instant insights with interactive visualizations and statistical computations.
Understanding Pairs Trading
A practical example of how quantitative analysis drives trading decisions

Long Position

Buy Company A when it's expected to outperform relative to Company B

Short Position

Short Company B when it's expected to underperform relative to Company A

Profit Strategy

Profit from relative performance regardless of overall market direction

Example Scenario:

Suppose Company A and Company B are in the same industry and their stock prices usually move together. You notice Company A tends to perform slightly better than Company B over time. You could buy (go long) Company A and short Company B. If the industry moves up, A gains more than B, so your long position earns more than your short loses. If the industry moves down, A loses less than B, so your short profit offsets your long loss. This strategy profits from relative performance, not overall market direction.