If you are currently searching for new pairs or maybe have two stocks that you would potentially like to pair although you need to do some additional research to make sure this pair fits your requirements, we have a new tool which was recently introduced to us that can potentially help you.
The Catalyst Corner has a Free Pair Trading Tool that they are offering Free to their members. Note that Membership is free on their website although you will need to complete a short application that requires you to submit your contact information (name, email, zip code and create a password). Once your account is created you have the ability to create your own paired stock positions (one short and one long). The Pair Trading Tool allows you to decide how much capital you would like to employ per position along with a date range.
Once this information is submitted the Tool will generate a detailed report which includes a fundamental and statistical comparison of the pair you selected. You also have the option to create a pdf of the information for your pair and the tool will email you the pdf which can be useful if you want to refer back to your pair’s results without having to rerun the report or if you wanted to compare different pairs.
Please see example of the detailed pfd below – we used the pair DO (Diamond Offshore) and RIG (Transocean LTD):
Hopefully you will find this tool helpful with your pair trading. Your feedback on this tool would be appreciated therefore any comments are welcomed.