4. Statistical Arbitrage

Stat-arb is the quant end of pair trading: trade spreads that are cointegrated statistically bound to revert to a mean even when they wander not merely correlated. The edge isn't a story; it's the math of mean-reversion.

The workflow: screen for pairs with high correlation and confirmed cointegration, wait for the rolling z-score to stretch past your threshold, size the legs with the hedge ratio so the position is beta-neutral, enter, and let reversion do the work, closing as the z-score returns toward zero.

Orchard surfaces every input on the Agent Stats panel correlation, cointegration (Yes/No), rolling z-score, hedge ratio, volatility and Agent Pear's Signals run this screen continuously, publishing live and historical cointegrated setups you can open straight into a ticket. Pair it with Auto-Rebalance (Beta mode) to hold beta-neutrality automatically while you wait for the spread to come home.