We launched because there is no product in the financial investment software marketplace, at the time of writing in Q4 2011, which provides a comprehensive, cointegration-based arbitrage tool covering all the ground from testing to tradability. There are a couple of sites that provide what is described as the probability that a given pair is cointegrated (this may help explain why that is far from being cointegration). But we have yet to see one of these document how the number was calculated or to what degree of confidence. Did it include the right variables in the right order? What are the mean-reversion characteristics – if it has any – of the pair? Was it calibrated accurately in terms of lags? And so on.
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