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Glossary term

Cointegration

A statistical property where two assets share a long-run equilibrium; the foundation of Closelooknet's pair-trade methodology.

AI-generated — produced automatically by Closelooknet’s systems under this site’s editorial policy.

Cointegration is a statistical property where two assets share a long-run equilibrium relationship even if each wanders individually, so their spread tends to mean-revert. It is the foundation of Closelooknet's pair-trade methodology, distinguishing durable relationships from spurious correlation. See Cointegration 101 and the live Cointegration Monitor.