Long Canaan, Short CPI Card Group: A Statistical Arbitrage Opportunity (Technical Analysis)
Source: SeekingAlpha
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.
Introduction
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Long Canaan, Short CPI Card Group: A Statistical Arbitrage Opportunity (Technical Analysis)
CPI Card Group Inc.
NASDAQ: PMTS
PMTS Trading
7.57% G/L:
$18.12 Last:
20,843 Volume:
$17.36 Open:
