San Francisco-based 4th Story has released 4S.Klondike, its data mining system for pairs and relative value traders.
The vendor says 4S.Klondike can be used to mine large volumes of securities data to identify pairs trading opportunities using correlation, ratios, regression and other analytics.
The tool is designed to enable traders and portfolio managers to quickly find non-obvious pairs opportunities using pre-definied criteria and ranking systems. Any pairs identified can then be traded directly or run through a pairs trading model.
"Traders told us they were spending too much time analysing pairs one at a time with existing tools," says Steven Smith, chief executive officer of 4th Story. "4S.Klondike will tremendously increase their efficiency in uncovering the most interesting trading ideas and opportunities."
In addition, the system provides full visibility and graphical representation of the calculated statistics.