What is 'sigma' in the pair data report? Option: Beta value, Standard error of the intercept, Standard error of the residual, Today's residual

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What is 'sigma' in the pair data report?

Beta value

Standard error of the intercept

Standard error of the residual

Today's residual

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What is the term for the difference between the predicted price of a dependent stock and its actual price in a linear regression model?

Standard Error

Slope

Intercept

Residuals

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What does the 'Standard Error' in a linear regression model represent?

The standard deviation of the residuals

The difference between the predicted and actual stock prices

The variance of the intercept

The strength of the relationship between the two stocks

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In the pair trading equation y = M*x + c + ε, what does 'ε' represent?

The intercept of the regression line

The correlation coefficient between the two stocks

The residual or error term of the equation

The beta coefficient of the independent stock

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What is the key trigger for initiating a pair trade?

ADF value

Intercept

Beta value

Standard Error (Std_err)

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What is the primary focus when analyzing potential pairs for pair trading?

"Intercept of the regression"

"Standard error of the regression"

"Beta of the pair"

"Residuals from the regression"