Macro Regression News Today

Statistical arbitrage (stat arb) is a pillar of quantitate trading that relies on mean reversion to predict the future returns of an asset. Mean reversion believes that if a stock has risen higher it’s more likely to revert in the short term which is the opposite of a momentum strategy that believes if a stock has been rising it will continue to rise. This blog post will walk you the ‘the’ statistical arbitrage paper Statistical Arbitrage in the US Equities Market apply it to a stock/ETF p...