Statistical Arbitrage

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Statistical Arbitrage

In the context of hedge funds, a style of management that employs complex statistical models that try to capture small abnormalities in a security's intraday return.


An investment practice that attempts to profit from inefficiencies in price by making transactions that offset each other. For example, one may buy a security at a low price and, within a few seconds, re-sell it to a willing buyer at a higher price. Arbitrageurs can keep prices relatively stable as markets try to resist their attempts at price exploitation. Arbitrageurs often use computer programs because their transactions can be complex and occur in rapid succession.
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Statistical arbitrage is rooted in mathematics to deliver alpha independent of traditional risk factors.
The author also supplies a new presentation of statistical arbitrage that includes discussion of pairs trading and cointegration.
The new ccCFD service," he says, "will appeal to long-only asset managers on the prowl for risk management tools (and currently use single-stock futures), UCITS III funds seeking counterparty credit risk mitigation models, statistical arbitrage hedge funds looking for tax certainty and retail aggregators facing capital adequacy regulation.
The report also addresses the multi-dimensional client; learning from the way prime brokers cater to statistical arbitrage hedge funds and other high-volume, model-driven strategies, notoriously sensitive to costs and speed, indicative of the sophistication being brought to the changing brokerage business model (TABB estimates that for stat arb funds with cost-plus commission deals, net rebates account for 80% of the "commission" revenue); challenges in capturing client-level execution and research costs; the profitability matrix; and the manual process for client analytics versus a universal client analytics platform.
Other Strategies deployed by The Bullion Fund include Global Macro, Statistical Arbitrage, and some Directional equities and futures.
The firm's investment strategies include global macro trading, equity long/short, statistical arbitrage, fundamental equity investing in the U.
NEW YORK -- Southridge LLC is very pleased to announce its Double Alpha Group ranked among the Top 10 Statistical Arbitrage Hedge Funds in each of Barclay Data Finder Hedge Fund Rankings.
The firm's trading strategies include global macro trading, long/short, statistical arbitrage, event driven strategies and technical trading systems.
5 million venture capital fundraising to develop quantitative trading systems for global equity and futures markets; co-directed a team of 20 for trading model development and system integration and testing; led a high-frequency, market-neutral statistical arbitrage fund; and designed a real-time portfolio monitoring and risk management system.

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