text 3 Dec Today’s hot pairs

ACE-EIG

Sector: Property & Casualty Insurance
Currently converging from 0.26 standard deviations

Hedge ratio:

3.32

Cointegration:

Over 99%

Avg. holding period:

13 days

σ Equilibrium:

0.77

Profit potential:

141 ticks


You could…

Buy ACE and Short EIG







EQ-SDXC

Sector: Diversified Communication Services
Currently converging from 0.05 standard deviations

Hedge ratio:

3.35

Cointegration:

Over 99%

Avg. holding period:

17 days

σ Equilibrium:

2.38

Profit potential:

39 ticks


You could…

Short EQ and Buy SDXC







CBS-TVL

Sector: Broadcasting - TV
Currently converging from 0.68 standard deviations

Hedge ratio:

2.4

Cointegration:

Over 99%

Avg. holding period:

10 days

σ Equilibrium:

1.54

Profit potential:

180 ticks


You could…

Short CBS and Buy TVL







CAVM-MLNX

Sector: Semiconductor - Broad Line
Currently converging from 1.04 standard deviations

Hedge ratio:

1.32

Cointegration:

Over 99%

Avg. holding period:

9 days

σ Equilibrium:

0.08

Profit potential:

202 ticks


You could…

Buy CAVM and Short MLNX




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