PMTS - Long Canaan, Short CPI Card Group: A Statistical Arbitrage Opportunity (Technical Analysis)
2025-03-05 10:58:16 ET
Summary
- Statistical Arbitrage opportunity identified between Canaan Inc. and CPI Card Group Inc. due to significant spread deviation from historical mean.
- Trade involves buying CAN and shorting PMTS, with a target profit of 15.8% based on mean reversion expectations.
- Risks include potential end of the relationship between stocks; keep cash reserves for better entry points and unforeseen market movements.