Long QCOM, short TXN, same sector: $1 of QCOM against $1.29 of TXN, sized so that a typical day moves each leg by about the same amount. The spread is -24.4% over the last 120 sessions, -11.8% over the last 20, and today's level sits at the 8th percentile of its own path, deeply compressed, widening over the last ten sessions. Alpha 81 against 92, a gap of -11 points (-42 ten sessions ago). Net market exposure at this sizing: −0.14, a clean relative bet. 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 last 3 times these two sat this far below their one-year average, 1 closed half the gap within ten sessions. TXN leads (Alpha 92); QCOM is not a fresh riser (Alpha 81).
One line of your account split $1 : $1.29 across the legs at the last close (QCOM $178.64, TXN $311.80); 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 QCOM and $1.29 short TXN 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 QCOM and TXN carry each leg on its own.