Pairs Trading
Order Description
using the Capm model to do it, and also use the correlation to make the paris, and Unit Root test to check whether the data is stationary or non-stationary. What is more, I am using the co-intergration (Johnhansen test) to double check whether they are pairs or not. Plz make sure explain all of them in the methodology. And the main purpose of this topic is to do the returns, you’ll find an excel named returns later.