Statistical Arbitrage Portfolios in the Black-Scholes Framework

来源 :第八届工业与应用数学国际大会 | 被引量 : 0次 | 上传用户:jackwang02
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  In this study we consider different statistical arbitrage strategies and prove the existence of statistical arbitrage portfolios in the Black-Scholes framework.Statistical arbitrage profits can be generated if there exists at least one asset in the economy that satisfies the statistical arbitrage condition derived.We derive analytical formulas for the expected value and probability of loss of our statistical arbitrage portfolios.Furthermore,extensive Monte Carlo simulations are conducted to verify our theoretical results.
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