The Correlation-Adjusted Reversal Indicator.

Creating a Correlation-Adjusted Mean-Reversion Indicator in Python.

Combining statistical metrics with technical indicators is a powerful tool that allows us to take advantage of more market properties. In this article, we will try to combine mean-reversion through a simple differencing with the linear correlation metric and how it performs when used in a normal contrarian trading strategy.

I have just released a new boo…