Statistical Arbitrage

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DEFINITION of 'Statistical Arbitrage'

A profit situation arising from pricing inefficiencies between securities. Investors identify the arbitrage situation through mathematical modeling techniques.

INVESTOPEDIA EXPLAINS 'Statistical Arbitrage'

Statistical arbitrage is not without risk; it depends heavily on the ability of market prices to return to a historical or predicted normal.

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  4. Is there a way to profit from arbitrage trades on delivery duty paid?

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  6. What models should I use to make arbitrage trades?

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