# Statistical Pairs Trading Strategy

A pairs trading strategy based on cointegration and mean reversion using historical market data.

Canonical: https://prismaticalgos.com/compendium/algo/11358-statistical-pairs-trading-strategy
Record ID: 11358
Catalog rank: 1994 (reading order, not performance)
Snapshot: 2026-10-31 15:46 UTC
Family: Mean Reversion & Counter-Trend (B)
Source: https://github.com/arav-kamat/Statistical-Pairs-Trading-Strategy
Evidence label (unverified): backtest_shown

## Scope and limitations

These are machine-extracted research records, not verified trading systems. Catalog rank measures specification detail and claimed evidence, not profitability. The catalog extraction pipeline did not independently backtest these records. Its separate selected testing ledger does not validate the wider corpus. Rules, labels and parameters can be incomplete or wrong; consult the original source and its reuse terms.

No endorsement, ownership claim or source-code reuse permission is implied.

## Extraction warnings

Opacity warnings: UNDEFINED ENTRY TERM: the entry conditions are prose naming a concept with no numeric definition, so two readers would implement them differently. Advisory only -- this does not affect the score.

## Recorded profile

- symbols: KO-PEP, V-MA, HD-LOW, XOM-CVX, MSFT-ORCL, JPM-BAC, VOO-IVV, GLD-IAU, QQQ-VGT, DIA-SPY, XLE-VDE
- timeframes: any
- sessions: any
- market_regime: trending|ranging|volatile|breakout|any

## Indicators

No indicator stack recorded.

## Recorded long-entry rules

- Z-Score < -2

## Recorded short-entry rules

- Z-Score > +2

## Recorded exit rules

- Z-Score returns near zero

## Recorded filters

- cointegration test
- hedge ratio estimation

## Risk controls

- Stop loss: Not specified
- Take profit: Not specified
- Position sizing: Not specified