Exploring Pair Trading Opportunities in the ETF market

ETF: In this report Economatica’s Pair Trading Module selectively screens 40,000 pairs (200 ETFs) to identify long/short opportunities.

 

Economatica has a powerful yet easy to use module for identifying, analyzing, and back-testing pair trades (long/short).

We used the Economatica system to find and report all possible pairs of the top 200 ETFs by the dollar value of the 30-day Average Daily Trading Volume.

Out of the universe of 40,000 pairs analyzed in a few moments, the Economatica system identified 42 pairs (ETF) whose current ratio sits currently more than 3 standard deviations from the mean. In addition, in making this selection we asked that only highly correlated pairs (80% or greater) with volatility under 50% were considered.

The table below shows 20 of the pairs meeting the criteria along with various analytical metrics for your review.

ETF

Economatica is an online investment research platform designed to facilitate deep fundamental and quantitative analysis. Asset managers, analysts, and other investment professionals have used Economatica for more than 30 years to research securities, identify opportunities, and make better investment decisions. To learn more please contact us.

Subscribe to our newsletter and receive our
exclusive content
as soon as it comes out

RELATED STUDIES

Software stands out among best performing Sectors of 2018.

We explore year-to-date sector returns of the market and identify the hottest sectors. Using the...

Learn more

July 16, 2018 | By Economatica

IPOs continue to impress in 1st half of 2018

In this edition of Value Reports we examined the IPO market in the 1st half...

Learn more

July 10, 2018 | By Economatica

2018 Mid-Year Review. Who are the winners so far?

In this edition of Value Reports we identify and examine the Top 10 Winners of...

Learn more

July 2, 2018 | By Economatica