Download the source code from here:
https://onepagecode.substack.com/
In this video, I walk you through an exciting pairs trading strategy using Coca-Cola (KO) and PepsiCo (PEP) stocks. We'll dive deep into how you can implement statistical arbitrage using Python to trade these two beverage giants. Despite differences in their fundamentals, Coca-Cola and PepsiCo often move in sync when the market reacts to industry-wide events. I'll show you how to capitalize on this by identifying price divergences and trading opportunities.
We'll cover how to retrieve historical stock data from Yahoo Finance, calculate returns, and evaluate performance using correlation analysis. The video compares this strategy to a 50/50 buy-and-hold strategy, helping you see which method offers better returns over time. Whether you're new to algorithmic trading or an experienced trader looking for new strategies, this step-by-step guide is perfect for anyone interested in stock market analysis using Python.
Read the article here: https://onepagecode.substack.com/p/al...
Download code here: https://onepagecode.substack.com/p/al...