Previously: ​A Tale of Two Prices (the core idea of stat arb)​ Last time we established that stat arb is really about betting on divergence/convergence behaviour continuing. Two things that have historically moved together come apart, and you bet on them coming back together. Remember the forced flows example, some fund or whatever having to ... Read more The post Moneyball: Finding Undervalued Pairs Using Unconventional Metrics appeared first on Robot Wealth .

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