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pairs-trading

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Build robust market-neutral pair strategies.

Finance & Accounting#risk-management#backtesting#portfolio-construction#cointegration#mean-reversion#pairs-trading#hedge-ratio
Authorbrainbytes-dev
Version1.0.0
Installs0

System Documentation

What problem does it solve?

Pairs trading design helps traders and quants create market-neutral strategies that exploit temporary mispricings between related securities, enabling systematic, rule-based trading with reduced market exposure.

Core Features & Use Cases

  • Pair Selection Methods: cointegration-based and alternative approaches (distance, correlation, fundamental) to identify robust hedgeable pairs.
  • Spread Construction: estimation of hedge ratios (OLS, TLS, Kalman) and spread computation for mean-reverting signals.
  • Trading Rules & Execution: entry/exit signals, z-score thresholds, and risk-controlled position sizing for disciplined trading.
  • Risk Management & Diversification: stop-loss, re-test cointegration, sector diversification, and portfolio-level risk controls.
  • Portfolio of Pairs: building a diversified set of 10-30 pairs, periodic rebalancing, and performance diagnostics.

Quick Start

Start by selecting a universe of related securities, compute cointegration-based spreads, and implement mean-reversion trades with clearly defined risk controls.

Dependency Matrix

Required Modules

None required

Components

Standard package

💻 Claude Code Installation

Recommended: Let Claude install automatically. Simply copy and paste the text below to Claude Code.

Please help me install this Skill:
Name: pairs-trading
Download link: https://github.com/brainbytes-dev/everything-claude-trading/archive/main.zip#pairs-trading

Please download this .zip file, extract it, and install it in the .claude/skills/ directory.
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