Long XLK, short ENPH, name against a sector: $1 of XLK against $0.45 of ENPH, sized so that a typical day moves each leg by about the same amount. The spread is +37.6% over the last 120 sessions, +0.8% over the last 20, and today's level sits at the 80th percentile of its own path, stretched, narrowing over the last ten sessions. Alpha 22 against 23, a gap of -1 points (+11 ten sessions ago). Net market exposure at this sizing: +0.81, 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, 1 closed half the gap within ten sessions: a spread that has tended to keep going.
One line of your account split $1 : $0.45 across the legs at the last close (XLK $174.58, ENPH $26.95); fractions included. Arithmetic on a setting you choose, not a recommendation.
| entered | held | result | exit | gen |
|---|---|---|---|---|
| Oct 28 | 4d | -27.7% | Alpha over 40 | Bernoulli |
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 XLK and $0.45 short ENPH 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 XLK and ENPH carry each leg on its own.