🔗 Select Your Pair
History fetched automatically · Lookback rule of thumb: set to 2–4× the pair's average days to mean reversion
Select a classic pair or enter custom tickers
and click Analyse Pair
Identify mean-reversion opportunities between two correlated assets using Z-score analysis and real historical price data. The mathematical foundation of quantitative hedge fund market-neutral strategies — when the spread diverges beyond its historical norm, the statistical edge is on your side.
History fetched automatically · Lookback rule of thumb: set to 2–4× the pair's average days to mean reversion
Select a classic pair or enter custom tickers
and click Analyse Pair
Two assets can be cointegrated even if individually non-stationary — their price ratio tends to revert to a long-run equilibrium. Classic examples: Coca-Cola/Pepsi (same market, same consumer), JPM/BAC (identical interest rate exposure). The key is shared economic drivers, not just historical correlation.
Spread Z-score = (current ratio − rolling mean) / rolling std deviation. When Z > +2, Asset A is relatively expensive vs B — short A, long B. When Z < −2, the reverse. Close when Z reverts toward 0. ±2 means the spread is beyond 2 standard deviations from its mean — a historically high-probability mean-reversion setup.
Regime-change risk: the relationship can break permanently (acquisition, sector-specific regulatory shock, business model change). Stop losses are essential. Lookback too short = noisy signals; too long = misses recent structural shifts. This tool uses real Yahoo Finance data — always validate with your own research.