Pairs Trading

This includes a notebook on how to implement Quantitative Strategies, specifically the Pairs Trading Algorithm.

Repository contains the following :

• 1: Developing a model to test for stationarity.
• 2: Building a model to test for cointegration.
• 3: Selecting a portfolio of assets and identifying cointegrated pairs within the dataset.
• 4: Defining features and labels to generate trading signals for the strategy.

Data

I obtained the historical financial data from Yahoo Finance, which offers free access to such information. The data extraction was accomplished using theyFinance Python module.

Installation

Install all the modules mentioned in requirements.txt on your Jupiter Notebook.