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Pair Trading Spread

Calculate spread and cointegration for pair trading.

Pair Trading Spread

Calculate spread and hedged exposure between two assets for pair trading.

Results

Run a calculation to see results.

About this calculator

This tool helps estimate the spread between two assets given a hedge ratio β. Pair trading often involves going long one asset and short another to isolate relative performance. The calculator shows per-unit spread and total spread for your positions and suggests a β and quantity B to neutralize per unit or by value.