Question 1

What is pair trading?

Accepted Answer

Pair trading is a market-neutral statistical arbitrage strategy that involves simultaneously buying one asset and selling a correlated asset when their price spread deviates from the historical mean. Profits are made when the spread reverts to its average.

Question 2

What is a Z-Score in pair trading?

Accepted Answer

The Z-Score measures how many standard deviations the current spread between two assets is from its historical mean. A Z-Score above +2 or below -2 typically signals a trading opportunity, as the spread is likely to revert to the mean.

Question 3

What is cointegration?

Accepted Answer

Cointegration is a statistical property where two time series share a long-term equilibrium relationship. In pair trading, cointegrated pairs are preferred because their spread is stationary and mean-reverting, making trades more reliable.

Question 4

Is this pair trading screener free?

Accepted Answer

Yes, the Swiss-Quant Pair Trading Screener is completely free with no signup required. It provides real-time Z-score, correlation, cointegration analysis, and trading signals for both crypto and equity pairs.

Pair Trading Screener

Active Signals (|Z-Score| > 2)

BTC / ETH

Spread History (60 days)

Z-Score History

Rolling Correlation (30-day)