Long SPY, short XLC, name against a sector: $1 of SPY against $0.72 of XLC, sized so that a typical day moves each leg by about the same amount. The spread is +6.6% over the last 120 sessions, +1.1% over the last 20, and today's level sits at the 86th percentile of its own path, stretched, narrowing over the last ten sessions. Alpha 49 against 53, a gap of -4 points (+17 ten sessions ago). Net market exposure at this sizing: +0.47, it leans long the market.
Not on the desk's list as of Nov 10, three sessions behind. Pro sees today's list.
The last 8 times these two sat this far above their one-year average, 0 closed half the gap within ten sessions: a spread that has tended to keep going.
One line of your account split $1 : $0.72 across the legs at the last close (SPY $758.44, XLC $107.64); 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.
How to read it: the spread is what $1 long SPY and $0.72 short XLC 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 SPY and XLC carry each leg on its own.