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 β when the spread diverges beyond its historical norm, the statistical edge is on your side.
Real price data via yfinanceZ-Score spread analysisEntry & exit signal detectionStocks, ETFs, commodities, FX6 classic preset pairsCustom ticker lookup
π Select Your Pair
KO / PEP
Coca-Cola vs Pepsi
β Classic pair
JPM / BAC
JP Morgan vs Bank of America
β Banking sector
XOM / CVX
ExxonMobil vs Chevron
β Oil majors
AAPL / MSFT
Apple vs Microsoft
β Big Tech
GLD / SLV
Gold vs Silver ETF
β Precious metals
SPY / GLD
S&P 500 vs Gold
β Risk-on/off hedge
Stocks, ETFs, commodities, FX β type a name or ticker symbol
Must have price history on Yahoo Finance
Rule of thumb: set to 2β4Γ the pair's average days to mean reversion
History fetched automatically based on lookback window β no manual selection needed.
Select a classic pair or enter custom tickers and click Analyse Pair
Methodology
How Statistical Pairs Trading Works
A market-neutral strategy used by quantitative hedge funds since the 1980s.
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Cointegration & Mean Reversion
Two assets can be cointegrated even if individually non-stationary β 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.
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Z-Score & Entry Signals
Spread Z-score = (current ratio β rolling mean) / rolling std deviation. When Z > +2, Asset A is relatively expensive vs B β short A, long B. When Z < β2, the reverse. Close when Z reverts toward 0. Β±2 means the spread is beyond 2 standard deviations from its mean β a historically high-probability mean-reversion setup.
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What Can Go Wrong
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 β always validate with your own research.