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<p>Statistical arbitrage involves finding patterns in how prices of related things, like stocks, change over time. It's like spotting opportunities to buy low and sell high. To do this, you pick two related things, collect their price data, and calculate the difference between their prices (called the spread). You use math to see if this spread behaves predictably. When the spread moves too much from its usual pattern, you might decide to make a trade. But, you have to be careful and not risk too much money. You keep an eye on the trade, and when the spread goes back …</p>
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