YouDomo's Pairs Trading Model tests for cointegration between any two stocks, generates Z-score-based buy and sell signals, and backtests both spread and long-only strategies — across 3,500+ U.S.-listed stocks.
Features
From cointegration testing to live backtesting, YouDomo's Pairs Trading Model gives you the quantitative tools previously reserved for hedge fund desks.
Select any two U.S.-listed stocks and instantly run a full cointegration analysis. Pro users can test any combination — free users can explore the model with KO and PEP.
The model calculates the normalized spread between two stocks and marks entry signals when the Z-score exceeds ±2 — the classic pairs trading threshold for mean reversion.
Uses the Engle-Granger cointegration test to determine whether two stocks move together over time. A low p-value signals a statistically meaningful long-run relationship.
Backtests a classic long/short spread strategy — long the cheaper stock, short the expensive one — and plots cumulative returns against each stock's individual performance.
Backtests a long-only rotation strategy that holds whichever stock is statistically cheaper at any given time, going to cash when the spread is neutral.
Every analysis surfaces three instant stats: the Engle-Granger p-value, a cointegrated / not cointegrated status badge, and the Pearson correlation between the two stocks.
Free users can run the model on KO and PEP. Upgrade to Pro to test any pair across the full YouDomo universe of US-listed stocks.
The Z-score panel normalizes the price spread between your two stocks. When the spread stretches beyond ±2 standard deviations, the model fires a buy or sell signal — marking the precise point on the price chart with an arrow.
Run a free analysis with KO & PEP →
See both the Engle-Granger spread strategy (long one, short the other) and the long-only rotation strategy plotted against individual stock returns since the first signal. A simple benchmark that answers: did the pairs strategy actually outperform just holding the stocks?
Try the backtester →
How It Works
Type any two U.S.-listed stock symbols you want to test as a pair. Classic examples: KO / PEP, JPM / BAC, MSFT / GOOGL.
The model pulls historical as far back as 2016 for some stocks, calculates normalized returns, tests for cointegration, and computes the rolling Z-score spread.
Buy signals (▲) appear when the spread hits −2. Sell signals (▼) appear at +2. Check the p-value to know whether the relationship is statistically valid.
Scroll down to see how the spread strategy and long-only rotation performed historically versus simply holding either stock outright.
Fast Stats
Every pairs analysis surfaces three key statistics instantly — no spreadsheet required.
FAQ
Free to start with KO & PEP. Upgrade to Pro for all 3,500+ stocks.