Capturing Market Inefficiencies Through Mathematical Precision
At HORIZON OEIC LTD, our Statistical Arbitrage strategies identify and exploit temporary pricing anomalies between related financial instruments, generating consistent returns with minimal correlation to broader market movements.
Multi-Strategy Approach
Our Statistical Arbitrage portfolio encompasses several complementary methodologies:
Pair Trading
We identify historically correlated securities that have temporarily diverged from their established relationship, taking opposing positions with the expectation of convergence.
Basket Trading
By constructing carefully weighted baskets of related securities, we capitalise on relative value opportunities across more extensive sets of instruments while neutralising common risk factors.
Index Arbitrage
Our systems continuously monitor discrepancies between index instruments and their underlying components, allowing us to capture ephemeral price differences with rapid execution.
Cross-Asset Correlations
We model complex relationships between non-identical instruments across different asset classes, identifying statistically significant deviations that signal trading opportunities.
Quantitative Edge
The foundation of our Statistical Arbitrage approach rests on:
- Advanced Statistical Modeling: Proprietary algorithms that detect and verify statistically significant relationships
- Big Data Analysis: Processing of vast historical datasets to identify persistent patterns
- Machine Learning Applications: Continuous refinement of predictive models based on evolving market dynamics
- Real-Time Monitoring: Instantaneous detection of emerging opportunities across global markets
Risk Management Framework
Our Statistical Arbitrage strategies incorporate sophisticated risk controls:
- Market-neutral positioning to minimise directional exposure
- Strict position sizing based on statistical confidence levels
- Diversification across dozens of independent relationship models
- Automated risk limits that adjust with changing market conditions
- Continuous stress-testing against historical and hypothetical scenarios
Performance Characteristics
The Statistical Arbitrage portfolio is designed to:
- Generate consistent returns independent of market direction
- Maintain a low volatility profile compared to traditional investments
- Provide proper diversification through low correlation to major asset classes
- Perform particularly well during periods of increased market volatility
Why Choose Our Statistical Arbitrage Strategies
HORIZON OEIC LTD combines mathematical expertise with sophisticated trading infrastructure to implement statistical arbitrage at an institutional scale. Our team’s background spans quantitative finance, data science, and market microstructure, allowing us to identify subtle inefficiencies others miss.
For investors seeking non-directional returns with limited correlation to traditional portfolios, our Statistical Arbitrage strategies offer an attractive enhancement to overall investment outcomes.