Long LLY, short TMO, same sector: $1 of LLY against $1.03 of TMO, sized so that a typical day moves each leg by about the same amount. The spread is -16.1% over the last 120 sessions, +11.6% over the last 20, and today's level sits at the 59th percentile of its own path, mid-range, flattening over the last ten sessions. Alpha 90 against 51, a gap of +39 points (+16 ten sessions ago). Net market exposure at this sizing: −0.30, it leans short the market. The two are co-movers on the desk's own test.
Not on the desk's list as of Nov 10, three sessions behind. Pro sees today's list.
The spread sits near the middle of its range, so there is no stretch to count today. No hand-off in view: neither leg is where a cycle pair starts.
One line of your account split $1 : $1.03 across the legs at the last close (LLY $1431.00, TMO $699.44); fractions included. Arithmetic on a setting you choose, not a recommendation.
The house book has not closed a trade in this pair.
The house takes every listed cycle pair by the rules, after average trading costs; its full record is on the engine page. Pairs you assemble yourself are ideas, not posted trades: the Hedge pairs chapter says how the two differ.
Each leg against its sector fund, and each leg's true peers.
How to read it: the spread is what $1 long LLY and $1.03 short TMO would have made together, in percent of the long leg, close to close, before costs; the market's move cancels in it to the extent the two legs share it. Stretch is where today's level sits among the last 120 sessions of that path, a description of the spread's own history and not a forecast. Net β is the pair's remaining market exposure per $1 long at this sizing (each leg's beta over 250 sessions). The pages for LLY and TMO carry each leg on its own.