Pair trading is a smart method to profit from the price gap between two related stocks. This tool uses math to find stock pairs that move together over time. It checks for a strong long-term link called cointegration.
Once a pair is found, the tool calculates a z-score to track the price spread. When the spread goes too high or too low, it gives entry and exit signals. This strategy is market-neutral so it works in up, down, or flat markets.
Anyone can use this to build a balanced portfolio. It is based on statistical data, not hunches. The goal is to find trades that are less risky and independent from the overall market.
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