Pairs trading lab (Visa / Mastercard)

Python study of a classic statistical arbitrage setup:

• Pull daily closes (yfinance)
• Estimate OLS hedge ratio (V ~ MA)
• Build the spread, test ADF stationarity
• Estimate mean-reversion half-life
• Plot spread vs mean for visual inspection

Why this matters for quant roles

Shows I can move from market data → econometrics → a tradable residual, with honest stationarity checks (not just a pretty chart).

Run

pip install yfinance pandas numpy statsmodels matplotlib
python Z_score.py

Note

Research / education only. Not production trading code.