Statistical arbitrage has been making quant funds money for decades. They just never let you in. HedgeFundManager changes that — same strategy, built for retail traders.
GS is trading 4.3% above its historical spread vs MS. Correlation strong at 0.87. No earnings in the next 14 days for either name. Valid entry zone.
Statistical arbitrage — pairs trading — has been a core strategy at quant desks for decades. Renaissance Technologies. Citadel. Two Sigma. They use it because it works. Long, short, market-neutral. Profit when the spread reverts. Doesn't matter if the market's up or down.
The problem? You needed Bloomberg data, a quant team, a prime broker, and a seven-figure minimum to even get in the room. That's the velvet rope.
HedgeFundManager pulls you past it. Same strategy. Same signal quality. £39 a month.
Find two correlated stocks. Wait for them to diverge. Bet they come back together. Exit when they do. That's pairs trading. We automate every step.
After US close, the scanner checks 130+ pairs. It fits an OLS regression on 120 days of prices to get the hedge ratio (β), computes the spread, and calculates the z-score — how far apart the pair has stretched from its historical mean. If |z| ≥ 2.0 with correlation ≥ 0.70, that's a signal.
Claude reviews every live signal — checks for blowout risk (|z| ≥ 3.0 means structural break, not stronger signal), earnings in the next 14 days via Finnhub, and whether the pair is in a valid mean-reverting regime. You get plain English: trade it, watch it, or avoid it.
Connect your Alpaca account and set each pair to Auto (executes automatically) or Alert (emails you, you decide). The exit is clean: close when |z| < 0.5 or after 30 days. Start on paper trading. Build a track record. Move to live when you're ready.
No bloat. Every feature is there because pairs trading needs it.
Claude analyses every pair daily — signal flag, plain-English breakdown, historical win rate. You know why a signal is good, not just that it is. Cached and refreshed every 24 hours.
Three TradingView charts per pair: normalised price divergence, z-score history with shaded entry/exit zones, and 90-day rolling correlation. The blowout zone (|z| ≥ 3.0) is always marked red.
Connect your Alpaca account. Paper trading or live — your choice. The scanner places and closes trades automatically, or alerts you and waits. No Bloomberg. No prime broker. Just an API key.
The health check bar auto-flags earnings within 14 days via Finnhub, z-score blowout risk, correlation breakdown, and spread outside normal range. Never walk into an earnings landmine.
Override defaults on any pair — entry/exit thresholds, correlation minimum, notional per leg, max holding days, stop loss %. Tune your book without touching the scanner. Stored per user.
Every evening: open positions with live P&L, new signals triggered, top-scoring pairs, Claude-generated market commentary. Lands before NY open. The briefing your prime broker never gave you.
Not random tickers. Every pair is selected for structural correlation — same sector, similar business model, correlated revenue drivers. Same universe a quant desk would run.
| Pair | Sector | Z-Score | Correlation | Score | Signal | Win Rate |
|---|---|---|---|---|---|---|
| GS / MS | Investment Banks | +2.41 | 0.87 | 2.09 | Strong | 78.6% |
| NVDA / AMD | Semiconductors | +2.07 | 0.82 | 1.70 | Strong | 71.4% |
| XOM / CVX | Energy | -2.18 | 0.91 | 1.98 | Strong | 74.2% |
| V / MA | Payments | +1.72 | 0.94 | 1.62 | Watch | 82.1% |
| JPM / BAC | Retail Banks | +1.55 | 0.78 | 1.21 | Watch | 66.7% |
| HD / LOW | Home Improvement | +0.34 | 0.89 | 0.30 | Neutral | 69.0% |
| PFE / MRK | Pharmaceuticals | -0.88 | 0.73 | 0.64 | Neutral | 61.5% |
| UPS / FDX | Logistics | -3.44 | 0.76 | 2.61 | Avoid | 58.3% |
● Tier 1 pairs · UPS/FDX z-score ≥ 3.0 = blowout zone, never enter · Signals refresh daily after US market close
From beta testers who've been paper trading since launch.
"I've been reading about pairs trading for years but had no way to actually run it without proper data and tooling. This is literally what I was waiting for. The AI commentary is genuinely useful — not just marketing fluff."
"The z-score blowout warning saved me from a proper mess on a logistics pair. The AI flagged it as Avoid and explained why — structural break, not a mean-reversion opportunity. Old me would have piled in."
"I spent two years at an IB watching the quant desk run these strategies. Always assumed it was out of reach for retail. HedgeFundManager is the real deal — the strategy is sound, the execution is clean."
Institutional strategy. Retail price. No hidden fees, no per-trade charges, no lock-in.
Explore the signals before you commit. No card, no strings.
Everything you need to run a live pairs book. Start free, upgrade when ready.
Running a fund or family office? Talk to us about multi-user access and custom universes.
Past performance is not indicative of future results. Statistical arbitrage involves significant risk including risk of total loss. Backtest results are hypothetical and do not represent actual trading. This platform is informational only and is not investment advice. Paper trading is strongly recommended before deploying real capital.