The main strategies the company uses are convergence arbitrage and statistical arbitrage.
It belongs to wider categories of statistical arbitrage, convergence trading, and relative value strategies.
Like market-making strategies, statistical arbitrage can be applied in all asset classes.
In the world of finance and investments, statistical arbitrage is used in two related but distinct ways:
In academic literature, "statistical arbitrage" is opposed to (deterministic) arbitrage.
As a trading strategy, statistical arbitrage is a heavily quantitative and computational approach to equity trading.
Index arbitrage is a subset of statistical arbitrage focusing on index components.
This strategy is categorized as a statistical arbitrage and convergence trading strategy.
His company's original investment techniques became known as statistical and quantitative arbitrage.
Examples include statistical arbitrage, algorithmic trading, and electronic market making.