Earlier today, while on Twitter I crowdsourced a list of “natural” pairs. That is, a list of stocks that are almost identical. I took that list of suggestions, ran it through our model and generated a watch list with the current relative score for each of the pairs.
The model scoring results are available here for the watch list.
I then took the same pairs, and built a quick and dirty backtest of the results since Jan. 1, 2012. The following is how they have performed YTD. This is just a comparison of the pairs based on the closing price Dec. 31, 2011.
This is for comparison purposes only, and is in no way a suggestion to buy or sell any of these pairs specifically.