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RSK
Statistical Arbitrage Quant
High Demand$140K – $450K+
Statistical Arbitrage (StatArb) Quants specialize in pairs and basket trading — finding instruments that should move together and profiting when they temporarily diverge. This is one of the oldest and most enduring quantitative strategies, dating back to the 1980s at Morgan Stanley.
StatArb requires deep understanding of cointegration, mean reversion, and the delicate balance between signal strength and transaction costs. The V7 engine's S18 (Pairs Trading) module implements Engle-Granger cointegration testing with Kalman filter hedge ratio estimation — and this track teaches you exactly how and why it works.
8
Core Skills
7
Key Tools
10
Lessons
5
Career Stages
A Day in the Life
“Your universe consists of 200 equity pairs screened for cointegration. The morning scan shows 3 pairs with z-scores above 2.5 — potential mean reversion trades. You verify the Kalman-filtered hedge ratios are stable, check that the half-life is under 15 days, and size the positions to maintain dollar neutrality. One pair triggers: MSFT/AAPL spread has widened 2.8σ. You enter the pairs trade with a 1.5σ take-profit target.”
Core Skills
1
Cointegration Analysis2
Kalman Filtering3
Mean Reversion Models4
Hedge Ratio Estimation5
Spread Modeling6
Transaction Cost Analysis7
Portfolio Neutrality8
Regime Switching ModelsTools & Technologies
PythonstatsmodelspykalmanpandasnumpyscipyBloomberg
Prerequisites
✓Econometrics
✓Time Series Analysis
✓Multivariate Statistics
✓Pairs Trading Basics
Career Progression
Junior StatArb Analyst
→StatArb Quant
→Senior StatArb Quant
→StatArb Portfolio Manager
→Head of StatArb
Curriculum
1
PT Pairs Trading Introduction
Advanced • 55 min • Lesson 1 of 10
2
CI Cointegration
Advanced • 55 min • Lesson 2 of 10
3
KF Kalman Filtering
Expert • 55 min • Lesson 3 of 10
4
OU Spread Modeling
Expert • 50 min • Lesson 4 of 10
5
MR Mean Reversion Strategies
Advanced • 50 min • Lesson 5 of 10
6
TCA Transaction Cost Analysis
Advanced • 35 min • Lesson 6 of 10
7
PN Portfolio Neutrality
Expert • 35 min • Lesson 7 of 10
8
RSM Regime-Switching Models
Expert • 45 min • Lesson 8 of 10
9
BKT Basket Trading
Expert • 30 min • Lesson 9 of 10
10
SRM Statistical Arbitrage Risk Management
Expert • 35 min • Lesson 10 of 10
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