trade-2-gain – A Pairs Trading Product

Overview

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trade-2-gain – ValueAdd’s Pairs Trading Product is a Proof of Concept (POC) Product, developed by our in-house data analysts and coders. The product is based on the universal Pairs Trading theories i.e., the co-integrated stocks from the same industry will eventually converge to the same equilibrium price, and the success is in predicting these movements (Buy/Short) scientifically without any manual influence.

Predictive Precision

Our revolutionary product takes the guesswork out of Pairs Trading, providing specific buy/short signals backed by solid theoretical foundations. By leveraging advanced tests, the product identifies correlated stocks, the direction (rise/fall) of these stocks, the equilibrium price and even predicts the time duration when they’ll hit a certain equilibrium price. It’s not just the prediction butthe precision and consistency of the prediction that matters.

Key features of the product

Universal application

This works phenomenally well across regions including developed and emerging markets, and across sectors.

Applicable for listed and liquid equities

The product performs much better on listed and liquid equities.

Scientific Buy/Short Signals

The analytics model is trained on over 100+ pairs, to precisely predict the buy/short signals.

Features

Individual Sentiment of a company

This feature assesses the sentiment of a company based on the four aspects mentioned earlier. The sentiment is measured through a cumulative score, taking into consideration the weighted impact of each aspect.

The scores ranges from -1 to 1 with:
a) -1 depicting extremely negative views about the company.
b) 0 depicting a neutral sentiment.
c) 1 depicting a highly positive score for the company.

Who is it for?​

This tool is specifically designed for investors, fund managers, research analysts, desk analysts, desk traders, and all market participants seeking arbitrage opportunities across correlated listed stocks.

How will it help?

This product helps scientifically identify the mispricing between the two highly co-integrated stocks andoffers an arbitrage opportunity to maximize the returns.

1 How to use it_

How to use it?

Select the Region and the Industry of your choice, and leave the rest to our product to generate precise arbitrage trade signals, assisting you in your trading decisions.

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