Statistical Arbitrage in the Foreign Exchange Market

One of the most important steps in developing a profitable statistical arbitrage trading strategy is choosing the right pairs of stocks to trade. This can be a difficult and time-consuming process, but it is essential in order to find pairs that are likely to produce profitable results.

There are a number of different methods that can be used to find potential pairs of stocks for statistical arbitrage. One common method is to use a stock screener to find stocks that are highly correlated. This can be done by looking for stocks that have a high positive correlation coefficient. One can also look at the cointegration with the goal of finding stationary pairs time series.

Reference [1] looked at statistical arbitrage in the foreign exchange market and proposed an approach that involves 3 currency pairs. Basically, it attempted to use a relaxed form of the triangular arbitrage rule in order to construct a basket of currency pairs for trading that are highly cointegrated.

This paper presents an application of statistical arbitrage to foreign exchange markets and specifically on instruments that obey a triangle rule/law. These instruments have a long-term cointegration relationship which leads to the mean-reversion behaviour evident in their data. Metatrader 4 is used to develop an indicator which in turn is used to gather and process price data and inform an investor on when and how to invest in a particular combination of three instruments obeying the triangle rule. That is, a simple strategy is outlined and its long-term profitability is demonstrated using expectation value under some mild assumption of stability of cointegration model parameters.

In short, the author claimed that by using a relaxed form of the triangular arbitrage rule a profitable trading strategy can be developed.

We find the idea plausible, but given that the currency basket contains many instruments, we believe that commissions will eat away any potential profit.

Let us know what you think in the comments below.

References

[1] NJ. Matjelo, Triangular Statistical Arbitrage in Foreign Exchange Market, IJISET - International Journal of Innovative Science, Engineering & Technology, Vol. 09 Issue 03, March 2022

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Home and Car Insurance Bundles: The Pros and Cons

If you're like most people, you have both car and home insurance. And if you're like most people, you probably got those policies from the same company. It's a great way to save money on your insurance premiums. But is it always the best option? In this blog post, we'll take a look at the pros and cons of bundling car and home insurance.

The pros and cons of bundling car and home insurance

The biggest pro of bundling car and home insurance is that it's cheaper. When you bundle your policies, you usually get a discount on both your car and your home insurance premiums. That's because the insurance company knows that they're more likely to keep your business if they offer you a discount.

But there are some cons to bundling car and home insurance, too. The biggest one is that you might not get the best coverage for both your car and your home. That's because each policy is usually tailored to the needs of the individual product. So if you have a high-end car, you might not get the same level of coverage with a bundled policy as you would with a standalone car insurance policy.

All in all, bundling car and home insurance can be a great way to save money. But it's not always the best option for everyone. Make sure you compare your options before you decide whether or not to bundle your policies.

How to choose the best car and home insurance bundle

If you're thinking about bundling your car and home insurance, there are a few things you need to keep in mind. First, make sure you're getting the best possible deal on your premiums. Second, make sure you're not sacrificing coverage by bundling your policies. And third, make sure you understand the terms and conditions of both your car and your home insurance policies before you bundle them.

When it comes to getting the best deal on your premiums, it's always a good idea to shop around. Get quotes from multiple companies and compare them side-by-side. Make sure you're comparing apples to apples, though. That means looking at the same level of coverage for both your car and your home.

You should also make sure you understand the terms and conditions of both your car and your home insurance policies before you bundle them. That way, you'll know exactly what you're getting and you won't be surprised by any coverage gaps.

If you keep these things in mind, you'll be sure to choose the best car and home insurance bundle for your needs. And that will save you money in the long run.

Closing thoughts

In conclusion, there are pros and cons to bundling car and home insurance. It's cheaper, but you might not get the best coverage. Make sure you compare your options and understand the terms and conditions of both your car and your home insurance policies before you bundle them.

Thanks for reading. We hope this blog post has been helpful. What are your thoughts on bundling car and home insurance? Have you done it? What was your experience? Let us know in the comments below.

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How Difficult Is It To Become a Quantitative Trader?

Quantitative trading is a field that is growing in popularity. Many people are interested in becoming quantitative traders, but they may not know just how difficult it is to break into this career. In this blog post, we will discuss the skills and knowledge that you need to succeed as a quantitative trader. We will also talk about the education and training required to enter this field. So, if you are interested in learning more about quantitative trading, keep reading.

Is it difficult to become a quantitative trader?

Yes, it can be difficult to become a quantitative trader. However, it is not impossible. If you are willing to put in the time and effort to learn about this field, then you can be successful. Remember, the most important thing is to get started and never give up on your goal of becoming a quantitative trader.

What you need to become a quantitative trader

The first thing that you need to understand about quantitative trading is that it is a very competitive field. There are many people who are interested in this career, and only a limited number of jobs are available. This means that you will need to have the skills and knowledge necessary to stand out from the rest of the applicants.

One of the most important skills that you will need to have as a quantitative trader is the ability to analyze data. This data can come in many forms, including financial reports, economic indicators, and even social media data. You will need to be able to quickly identify trends and patterns in this data so that you can make informed trading decisions.

In addition to being able to analyze data, you will also need to have strong mathematical skills. Many quantitative trading strategies require the use of complex mathematical formulas and algorithms. You will need to be able to understand these formulas and algorithms so that you can implement them in your trading decisions.

Lastly, you will need to have a good understanding of the financial markets. This includes being familiar with the different types of securities that are traded in the markets, as well as how these markets work. You will also need to have a good grasp of the economic principles that drive market movements.

While it may seem like a lot of information to absorb, it is important to remember that you can always start small and gradually build up your knowledge over time. There are many resources available to help you learn about quantitative trading, including books, online courses, and even mentorship programs. The most important thing is to get started and never give up on your goal of becoming a successful quantitative trader.

Does an advanced degree guarantee success as a quantitative trader?

While an advanced degree can give you a leg up in the competition for jobs, it is not a guarantee of success as a quantitative trader. Remember, the most important thing is to have the skills and knowledge necessary to succeed in this field. So, even if you do not have an advanced degree, you can still be successful as a quantitative trader if you are willing to put in the time and effort to learn about this field.

What type of training is required to become a quantitative trader?

There is no one-size-fits-all answer to this question, as the training requirements will vary depending on the specific job that you are interested in. However, there are some general things that you should keep in mind. First, you will need to have a strong understanding of the financial markets. This includes being familiar with the different types of securities that are traded in the markets, as well as how these markets work. You will also need to have a good grasp of the economic principles that drive market movements.

Closing thoughts

In conclusion, becoming a quantitative trader can be difficult, but it is not impossible. If you are willing to put in the time and effort to learn about this field, then you can be successful. Remember, the most important thing is to get started and to never give up on your goal of becoming a successful quantitative trader.

I hope you found this article helpful. If you have any questions, please feel free to leave a comment below and I will be happy to answer them. Thanks again for reading.

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Home Insurance with a 1 Percent Deductible: How to Save Money on Your Coverage

If you're looking for a way to save money on your home insurance coverage, you may want to consider opting for a 1 percent deductible. This means that you will be responsible for paying the first 1 percent of any damages that occur to your home, and the insurance company will cover the rest. This can be a great way to reduce your premiums and still have protection in case of an emergency. In this blog post, we will discuss the benefits of choosing a 1 percent deductible and provide some tips on how to find the right policy for your needs.

What is an insurance deductible?

An insurance deductible is the amount of money that you are responsible for paying in the event of a claim. The higher your deductible, the lower your premiums will be. For example, if you have a $500 deductible on your home insurance policy and you make a claim for $1000, you will be responsible for paying the first $500 and the insurance company will cover the remaining $500.

Benefits of choosing a 1 percent deductible

There are several benefits to choosing a home insurance policy with a deductible of one percent. First, this can help you save money on your premiums. If you are willing to pay a higher deductible, your insurance company will usually offer you a discount on your premium. Second, a higher deductible means that you will have more coverage in the event of an emergency. In most cases, a home insurance policy with a deductible of one percent will cover up to $100,000 in damages. This can be a great safety net if you live in an area that is prone to natural disasters or other types of emergencies.

What are the benefits of choosing a high deductible?

There are several benefits to choosing a high deductible, including lower premiums and more protection in case of an emergency. A high deductible can also give you peace of mind knowing that you have coverage in case something happens.

When should you choose a high deductible?

If you are looking for ways to save money on your home insurance coverage, opting for a high deductible may be a good option. This is especially true if you have a good understanding of your coverage and feel comfortable with the amount of risk you are taking on.

How to choose the right home insurance policy with a high deductible

When choosing a home insurance policy with a high deductible, it is important to make sure that you are getting the right coverage for your needs. You will want to compare different policies and deductibles to find the one that best fits your budget and provides the level of protection you need. It is also important to read the fine print so that you understand the coverage and what is excluded from the policy.

If you are considering a home insurance policy with a high deductible, contact your agent or insurer to get more information and compare rates. This can be a great way to save money on your coverage and still have the protection you need.

Conclusion

A home insurance policy with a high deductible can be a great way to save money on your coverage. This option can also provide you with more protection in the event of an emergency. If you are considering this type of policy, be sure to compare rates and coverage options to find the best policy for your needs.

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Closing Entry: Definition, Example, Accounting

When it comes to accounting a closing entry is one of the crucial steps to finalizing an accounting period. This type of entry is made at the end of an accounting period and its purpose is to zero out all temporary accounts so that they are ready to be used in the next accounting period. Without closing entries, a company's financial statements would be inaccurate and incomplete.

In this article, we will be discussing what is a closing entry, how to record it, and what are its benefits. So if you are interested in learning about this important accounting process, keep reading!

Definition of Closing Entry

A closing entry is a type of accounting journal entry that is made at the end of an accounting period. The purpose of this entry is to zero out all temporary accounts so that they are ready to be used in the next accounting period. In simple words, closing entries are made to close the books for an accounting period.

There are three types of accounts that are closed at the end of an accounting period

1. Revenue accounts: Revenue accounts are the accounts that track a company's income. These accounts are usually closed at the end of an accounting period by debiting them and crediting the Income Summary account.
2. Expense accounts: Expense accounts are the opposite of revenue accounts, they track a company's expenses. Similar to revenue accounts, these accounts are closed at the end of an accounting period by debiting them and crediting the Income Summary account.
3. Dividends account: The dividends account is used to track a company's dividend payments. It means that when a company pays out dividends to its shareholders, the dividend payments are recorded in this account. These accounts are also closed by debiting them and crediting the Income Summary account.

How to record a closing entry

Here is how you can record a closing entry in your books

1. First, all revenue accounts are moved to the income summary. This is accomplished by debiting all revenue accounts and crediting the income summary in a journal entry.
2. Next, the procedure is repeated for expenses. All expenses are credited to expense accounts and debited from the income summary to close everything out.
3. Next, the income summary account is closed and added to retained earnings.
4. And lastly, if a dividend is paid, the balance is moved from the dividends account to retained earnings.

Benefits of closing entries

There are many benefits of closing entries, some of them are listed below

1. Helps in preparing accurate financial statements: Since all temporary accounts are closed at the end of an accounting period, it helps in preparing accurate financial statements. If these entries were not made, the financial statements would be incomplete and inaccurate.
2. Gives an idea of the company's profitability: Since all revenue and expense accounts are closed at the end of an accounting period, it gives us an idea of the company's profitability. If a company is making more revenue than expenses, it means that the company is profitable.
3. Helps in decision-making: Closing entries help managers and owners in decision-making by providing them with an accurate picture of the company's financial state.
4. Helps in preparing budgets: A budget is a plan that outlines how a company plans to spend its money. By preparing a budget, a company can track its actual spending against what it planned to spend. This helps in better decision-making.

Conclusion

Closing entries are an important part of accounting as it helps in preparing accurate financial statements. These entries help in understanding a company's profitability, making decisions, and in preparing budgets. So if you are an accountant or someone interested in learning about accounting, it is important to understand the concept of closing entries.

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Quantitative Finance and Insurance

Quantitative finance and insurance may seem like two very different industries, but they actually have a lot in common. Both fields rely heavily on mathematics and statistics to make sound decisions. In this blog post, we will discuss the similarities and differences between these two industries, as well as what you need to know if you are interested in pursuing a career in either one of them.

Differences between quantitative finance and insurance

There are a few key differences between quantitative finance and insurance. For one, insurance is focused on protecting against risks, while finance is more focused on making money. Insurance companies use actuarial science to calculate the probability of events occurring so that they can set premiums accordingly. Finance, on the other hand, relies heavily on investment and trading strategies to make money.

Another key difference is that insurance companies tend to be much more risk-averse than financial institutions. This is because insurance companies are required by law to maintain a certain level of reserves, in case claims need to be paid out. Financial institutions, on the other hand, are not subject to the same regulations and can therefore take on more risk.

Finally, insurance companies tend to have a longer time horizon than financial institutions. This is because insurance policies are often for long-term events, such as death or retirement. Financial institutions, on the other hand, are typically more focused on short-term gains.

Similarities between quantitative finance and insurance

Despite the differences between quantitative finance and insurance, there are also a number of similarities. For one, both industries rely heavily on mathematics and statistics. In order to calculate premiums or investment strategies, you need to be able to understand and work with complex equations.

Both industries also require a deep understanding of financial markets. In order to make sound decisions, you need to be able to understand how different markets work and how they are interconnected. Finally, both industries are highly regulated. This means that there are a lot of rules and regulations that you need to be aware of before making any decisions.

So, what does all this mean for you?

If you are interested in pursuing a career in quantitative finance or insurance, there are a few things you need to know. First, you need to be good at math and statistics. Second, you need to have a deep understanding of financial markets. And third, you need to be aware of the rules and regulations that apply to your chosen field.

Which has better job prospects, quantitative finance or insurance?

This is a difficult question to answer, as it depends on a number of factors. If you are interested in pursuing a career in either field, the best thing to do is to research the job market and see which one has better prospects in your area. Both quantitative finance and insurance require a deep understanding of mathematics and statistics, as well as a strong understanding of financial markets.

Are financial risk management and insurance the same?

No, financial risk management and insurance are not the same. Financial risk management is the process of identifying, assessing, and managing risks that could potentially impact a financial institution. Insurance, on the other hand, is a way of protecting against risks. Financial risk management and insurance are both important parts of the financial industry, but they serve different purposes.

What are some skills you need for a career in quantitative finance or insurance?

Some of the skills you need for a career in quantitative finance or insurance include:

- Strong math and statistical skills

- Deep understanding of financial markets

- Ability to work with complex equations

- Strong understanding of the rules and regulations that apply to your chosen field.

If you are interested in pursuing a career in either field, it is important that you have these skills. without them, it will be difficult to be successful.

Conclusion

We hope this blog post has given you a better understanding of quantitative finance and insurance. These are two very interesting and complex industries, with a lot of potential for career growth. If you are interested in pursuing a career in either field, be sure to do your research and understand the key differences between the two. Thanks for reading.

Please feel free to leave any questions or comments below. We would love to hear from you.

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How to Insure Your Engagement Ring on a Home Insurance Policy

Your engagement ring is one of the most valuable pieces of jewelry you own, and it's important to make sure that it's properly insured. Most home insurance policies will cover your jewelry up to a certain amount, but you may need to purchase an endorsement or rider to make sure that your ring is fully protected. In this blog post, we will discuss how to insure your engagement ring on your home insurance policy. We will also provide tips for keeping your ring safe and secure.

Is your engagement ring covered?

If you have a home insurance policy, your engagement ring will most likely be covered under your personal property coverage. This coverage protects the belongings in your home from events like theft, fire, and vandalism. Most home insurance policies have a limit on how much they will pay out for jewelry claims, so it's important to check with your insurer to see what your limit is. You can usually purchase an endorsement or rider to increase your coverage limit for jewelry. When you're insuring your engagement ring, it's important to get an appraisal so that you know how much coverage you need. You should also keep any receipts or documentation that you have for your ring in a safe place.

How to keep your ring safe and secure

To help prevent your engagement ring from being lost or stolen, it's important to take some precautions. You should always keep your ring in a safe place when you're not wearing it. You may want to consider buying a home safe to store your ring in. You should also avoid wearing your ring when you're doing activities that could damage it, like gardening or cooking. When you're traveling, it's best to keep your ring in a carry-on bag so that you can keep it with you at all times. Following these tips will help ensure that your engagement ring is protected against loss or damage.

If you have any questions about insuring your engagement ring, or if you need to file a claim, please contact your insurance agent or company. They will be able to help you through the process and make sure that you're getting the coverage you need.

Can I buy engagement ring insurance without home insurance?

Yes, you can purchase a standalone policy to insure your engagement ring. This type of policy will provide coverage for loss, theft, and damage. Standalone policies are usually more expensive than home insurance riders, but they may be the best option if you have a very valuable ring. To get a quote for a standalone policy, contact a jeweler or insurance company that specializes in engagement ring insurance.

When you're insuring your engagement ring, it's important to get an appraisal so that you know how much coverage you need. You should also keep any receipts or documentation that you have for your ring in a safe place.

Can I insure my engagement ring if it's not at my home?

Yes, you can insure your engagement ring even if it's not kept at your home. To do this, you would need to purchase a standalone policy or an endorsement on your homeowner's insurance policy. If you have a renters insurance policy, you may also be able to insure your engagement ring through that policy. Check with your insurer to see what coverage options are available.

The bottom line

In this blog post, we have discussed how to insure your engagement ring on your home insurance policy. We have also provided tips for keeping your ring safe and secure. If you have any questions about insuring your engagement ring, please contact your insurance agent or company. They will be able to help you through the process and make sure that you're getting the coverage you need. Thanks for reading. We hope this blog post has been helpful.

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Periodicity Assumption

Accounting concepts include assumptions that define the accounting process for entities. They differ from accounting standards as they do not apply to specific areas. Instead, accounting concepts cover all aspects of the accounting process for entities. The periodicity assumption is one of the crucial accounting concepts.

What does Periodicity Assumption mean?

The periodicity assumption requires companies to divide their activities into measurement intervals. These intervals may differ based on several factors. Usually, companies can use a monthly, quarterly, or annual cycle for reporting purposes. This way, they can report their financial activities within designated periods. The periodicity assumption allows companies to set those periods.

The periodicity assumption states that companies can report their financial results within a specific designated or artificial period. Once companies choose that period, they must follow it consistently. This way, they can allow for better comparisons between their financial information. For companies, it implies that they must separate information from their accounting systems based on those periods. It can significantly impact how companies prepare their financial statements.

How does the Periodicity Assumption impact businesses?

The periodicity assumption impacts how companies report their financial performance. It requires companies to separate that performance based on a specific period. However, it does not specify what that period should be. Instead, it allows companies to choose their reporting timeframe. It also requires this process to be consistent with the timeframe selected previously.

Essentially, the periodicity assumption allows companies to set their reporting periods. As stated above, they can choose between monthly, quarterly, and annual periods. The periodicity assumption helps specify how companies can separate their finances into different timeframes. Consequently, it helps stakeholders understand how performance has changed for the same interval over time.

While the periodicity assumption helps with consistency, it also covers inconsistent periods. In some cases, companies may change their reporting periods to different intervals. It may result in the financial statements being reported for longer or shorter intervals. However, these occur rarely. Nonetheless, the periodicity assumption still supports the accounting during those periods.

Why must entities follow the Periodicity Assumption?

The periodicity assumption lets companies set a reporting timeframe. Consequently, it allows them to set the expectations for their stakeholders. Companies can use this assumption to divide their operations into various periods to present to creditors and investors. With the periodicity assumption, these parties receive more consistent information. This way, companies can attract more finance.

The periodicity assumption also allows stakeholders to analyze a company's performance better. On top of that, it can also enhance internal reporting by creating specific reporting timeframes. The periodicity assumption also helps inform the users of the financial statements about the period the information covers. It further helps them understand how the company's performance has changed over time for a similar timeframe.

Conclusion

The periodicity assumption requires companies to report their financial results within a designated period. It entails companies dividing their performance into various periods. For most companies, these periods occur quarterly or annually. The periodicity assumption is of significant importance to both companies and their stakeholders.

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Where to Start Dividend Investing

If you're looking for a way to make your money work for you, dividend investing might be the right choice for you! In this guide, we will walk you through the basics of dividend investing and show you where to start. We'll also provide tips on how to grow your portfolio and maximize your return on investment. So what are you waiting for? Start learning about dividend investing today.

What is Dividend Investing?

Dividend investing is a strategy where you invest in stocks that pay out dividends. These dividend payments can provide you with a source of passive income, which can help you reach your financial goals sooner. In addition, dividend stocks tend to be more stable than other types of stocks, which means they can provide you with a measure of downside protection.

Why Should You Start Dividend Investing?

There are a number of reasons why dividend investing might be right for you. For starters, it can help you create a passive income stream. Additionally, dividend stocks tend to be more stable than other types of stocks, which means they can provide you with a measure of downside protection. And finally, dividend investing can be a great way to build wealth over the long term.

How to Start Dividend Investing

Now that you know what dividend investing is and why it might be right for you, let's talk about how to start. The first step is to choose an investment platform. There are a number of different platforms out there, so it's important to do your research and choose one that meets your needs. Once you've chosen a platform, the next step is to open an account and fund it.

Once you've opened an account, you'll need to decide which stocks you want to invest in. When choosing stocks, it's important to consider the company's dividend history and payout ratio. You'll also want to look at the stock's price-to-earnings ratio and sector. Once you've chosen a stock, you can start buying shares.

The final step is to monitor your portfolio and make adjustments as needed. This includes rebalancing your portfolio, selling stocks when they reach your target price, and reinvesting your dividends.

Is dividend investing superior to growth investing, or is it just a different strategy?

There's no definitive answer to this question. Both dividend investing and growth investing have their own advantages and disadvantages. Dividend investors typically seek out stocks that pay regular dividends, which can provide them with a source of passive income. Growth investors, on the other hand, are more interested in stocks that have the potential to appreciate in value. While dividend investing can be a great way to generate income, growth investing can be a better choice if you're looking to build wealth over the long term. Ultimately, it's up to you to decide which strategy is right for you.

What are some of the risks associated with dividend investing?

There are a number of risks associated with dividend investing. For starters, dividend payments can be reduced or eliminated entirely if a company's financial situation deteriorates. Additionally, dividend stocks tend to be more volatile than other types of stocks, which means they can lose value quickly if the market turns against them. Finally, many dividend investors rely heavily on the stock market for income, which means they could be in for a rude awakening if the market crashes.

While there are some risks associated with dividend investing, these risks can be mitigated by diversifying your portfolio and being selective about the stocks you invest in. By diversifying your portfolio, you can reduce your exposure to any one particular stock. And by being selective about the stocks you invest in, you can choose companies that have a strong financial position and are less likely to reduce or eliminate their dividend payments.

Despite the risks, dividend investing can be a great way to generate income and build wealth over the long term. So if you're looking for a way to diversify your investment portfolio, dividend investing might be right for you.

Conclusion

Dividend investing can be a great way to generate income and build wealth over the long term. If you're looking for a way to diversify your investment portfolio, dividend investing might be right for you. Just remember to diversify your portfolio and be selective about the stocks you invest in.

Have you ever considered dividend investing? If so, what are some of the reasons why? Let us know in the comments below.

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Statistical Arbitrage Using a Jump-Diffusion Model

Statistical arbitrage is a classic quantitative trading strategy that attempts to take advantage of statistical differences in the prices of assets. The strategy is based on the idea that if two assets are not perfectly correlated, then there is an opportunity to profit from the difference in their prices.

Statistical arbitrage is a data-driven approach to trading that relies on statistical analysis to find trading opportunities. It often utilizes processes such as Ornstein–Uhlenbeck to model the asset prices.

Reference [1] proposed a novel trading approach that utilizes a jump-diffusion process to model the overnight price gaps. Its findings are,

In this context, we made four contributions to the literature. The first contribution relates to the developed trading framework based on a jump-diffusion model: we are in a position to capture jumps, mean-reversion, volatility clusters, and drifts. Our approach identifies overnight price gaps based on the jump test of Barndorff-Nielsen and Shephard (2004) and exploits temporary market anomalies by corresponding investments. In a preliminary study, we confirmed the assumption of mean-reverting overnight gaps with the aid of the S&P 500 index. The second contribution focuses on the value-add of our strategy. Therefore, we benchmarked it against well-known quantitative strategies from the same research area, namely the naive S&P 500 buy-and-hold strategy, fixed threshold strategy, general volatility strategy, and reverting volatility strategy. The third contribution is based on our large-scale empirical study on a sophisticated back-testing framework. Our strategy produced statistically- and economically-significant returns of 51.47 percent p.a. after transaction costs; the benchmarks were outperformed. The fourth contribution focuses on the profitable and robust performance results also in the last part of our sample period. Our findings posited a severe challenge to the semi-strong form of market efficiency even in recent times.

In short, using a jump-diffusion model, the authors managed to develop statistical arbitrage trading strategies on SP500 stocks that delivered superior risk-adjusted returns.

In our opinion, this paper addressed an issue that is rarely discussed in the trading literature; that is, the robustness of trading strategies.

Let us know what you think in the comments below.

References

[1] J. Stübinger , L. Schneider, Statistical Arbitrage with Mean-Reverting Overnight Price Gaps on High-Frequency Data of the S&P 500, J. Risk Financial Manag. 2019, 12, 51

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