Statistics

Here you'll find information and help on using and understanding the various statistics in the PairsTrader System.

The statistics break down into 3 major categories:

Current / historical metrics contain information about the model that has been fit to past and present data. This information allows you to (1) backtest, to determine whether the model has been successful in earning profit with a particular pair in the past; (2) see how well the model is able to fit to historical data and (3) determine current market conditions to help you decide whether to make a trade or not.

Forecast metrics are based on a secondary model whose sole purpose is to extrapolate the current model's output into the future to determine how much money you can make in various scenarios.

Fundamentals contain information about each stock in the pair, including value, size, dividends, etc.