Statistical arbitrage is the price law obtained by recording, statistics and analysis of historical data, which is used to describe the basic characteristics of data, such as average value, variance, volatility, etc., and then use the knowledge of probability theory and mathematical statistics to obtain the abnormal situation beyond the normal price movement level, and take it as the basis of arbitrage. Statistical arbitrage analysis of the relationship between different varieties to find a suitable region for their relationship, and the scope of deviation from the region is the arbitrage space. In the research process, the determination of arbitrage area is affected to some extent by historical data or subjective judgment of arbitrager. The uncertainty and unpredictability of the future also pose a great challenge to this theory.
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