What does an ADF value of less than 0.05 indicate in pair trading?

The residuals are non-stationary The stocks are not cointegrated The residuals are stationary The error ratio is high

What is the key trigger for initiating a pair trade?

Beta value Intercept Standard Error (Std_err) ADF value

What action should be taken when the residuals hit -2.5 standard deviations in pair trading?

Sell Y and buy X Sell both X and Y Buy both X and Y Buy Y and sell X

What is 'sigma' in the pair data report?

Today's residual Standard error of the intercept Beta value Standard error of the residual

What factor determines the number of stocks of X and Y to trade in a pair?

Intercept ADF value Beta Sigma