text 14 Dec Today’s hot pairs

BHI-TESO

Sector: Oil & Gas Equipment & Services
Currently converging from 0.29 standard deviations

Hedge ratio:

2.93

Cointegration:

Over 99%

Avg. holding period:

12 days

σ Equilibrium:

4.6

Profit potential:

267 ticks


You could…

Short BHI and Buy TESO







ACE-EIG

Sector: Property & Casualty Insurance
Currently converging from 0.2 standard deviations

Hedge ratio:

3.32

Cointegration:

Over 99%

Avg. holding period:

13 days

σ Equilibrium:

0.77

Profit potential:

109 ticks


You could…

Short ACE and Buy EIG







MCO-EFX

Sector: Credit Services
Currently converging from 0.88 standard deviations

Hedge ratio:

0.98

Cointegration:

Over 99%

Avg. holding period:

11 days

σ Equilibrium:

-0.29

Profit potential:

268 ticks


You could…

Buy MCO and Short EFX







OXY-APC

Sector: Independent Oil & Gas
Currently converging from 0.1 standard deviations

Hedge ratio:

1.28

Cointegration:

Over 99%

Avg. holding period:

29 days

σ Equilibrium:

1.16

Profit potential:

60 ticks


You could…

Short OXY and Buy APC




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