[Jupyter Notebook] Getting Started with Statistical Arbitrage: A Comprehensive Guide to Pairs Trading in Python

Pairs trading is a form of statistical arbitrage. Pairs trading is done by simultaneously taking two positions on a short-term mispricing of highly correlated assets. For if we take on previous examples, it means going long on stock A and going short on stock B. 

In pairs trading, trading signals are generated by the price difference (spread) of the two assets that we are pairing. Traders would find assets with high correlation, identify unusually large spreads in comparison to their historical trend, and open simultaneous positions on both assets with the anticipation that this divergence will correct itself.

Full Guide on Using this Notebook:

https://medium.com/algocraft/getting-started-with-statistical-arbitrage-a-comprehensive-guide-to-pairs-trading-in-python-d303b0f8415d