Long XLV, short SPY, sector against the market: $1 of XLV against $1.31 of SPY, sized so that a typical day moves each leg by about the same amount. The spread is +21.9% over the last 120 sessions, +6.9% over the last 20, and today's level sits at the 96th percentile of its own path, very stretched, flattening over the last ten sessions. Alpha 85 against 49, a gap of +36 points (+57 ten sessions ago). Net market exposure at this sizing: −0.78, it leans short the market.
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 above their one-year average, 1 closed half the gap within ten sessions.
One line of your account split $1 : $1.31 across the legs at the last close (XLV $187.74, SPY $758.44); 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.
How to read it: the spread is what $1 long XLV and $1.31 short SPY 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 XLV and SPY carry each leg on its own.