Pairs Trading

Market-neutral cointegration scanner with automated three-stage news gating. Trade instructions are generated only after fundamental analysis clears — never on a spread anomaly alone.

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How Pairs Trading works

Cointegration first. News gating before every trade.

Scan for cointegrated pairs

The system scans for statistically related stocks across the S&P 500 and S&P 400 — companies whose prices tend to move together and revert when they diverge. The cointegration test surfaces genuine structural relationships, not spurious correlations.

Three-stage news gating

Before any trade instruction is generated, the spread is checked against three gates: news event detection (is something unusual happening?), fundamental impact analysis (does it change the structural relationship?), and signal degradation check (has the pair's cointegration held under recent conditions?). All three must clear.

Execute market-neutral

Long one leg, short the other. Net market exposure stays near zero — the trade is a bet on the spread, not on market direction. Paper mode lets you validate the strategy before committing real capital.

Why news gating matters

Most pairs-trading systems treat spread anomalies as trade signals. Datavelox doesn't.

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Pairs blow up on news

A cointegrated pair can diverge permanently if one company reports an earnings miss, a merger announcement, or a regulatory action. Trading into a news-driven spread is the most common pairs-trading mistake. The gating system screens these out before they reach you.

Instructions arrive clean

When a trade instruction appears in your terminal, it has passed all three gates. You see the spread, the cointegration statistics, and the entry rationale. You decide whether to act — the system handles the filtering.

Available on Standard and Pro

Free tier includes view-only access to the pairs terminal.
Full access — scanning, gating, and paper trading — requires Standard or Pro.

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