We develop a Statistical Arbitrage Strategy to identify and exploit mispricings in financial markets using statistical techniques. Statistical arbitrage involves simultaneously buying and selling related securities to profit from temporary price discrepancies.
Pairs trading is a statistical arbitrage strategy used by quantitative traders to exploit temporary price divergences between two related assets. In this project, we'll implement a pairs trading strategy specifically tailored for the Indian stock market.
We develop a Volatility Forecasting Model to predict future volatility in financial markets. Volatility forecasting is crucial for risk management, portfolio optimization, and trading strategy development.
We develop a Factor-Based Investing Model to construct and evaluate portfolios based on fundamental and quantitative factors. Factor-based investing aims to systematically capture specific sources of returns, or "factors," that have historically provided excess returns over the market.
