RegimeWatch
RegimeWatch detects cointegration breakdown in equity pairs before it happens — using live web signals instead of lagging price data. Most pairs trading systems raise the alarm after the Z-score explodes. RegimeWatch catches the degradation earlier by scraping daily regulatory news volume per company via Bright Data's SERP API, constructing a Regulatory Attention Index (RAI) for each asset, and testing whether asymmetric regulatory attention between pair legs Granger-causes increases in OU half-life — the statistical signature of a weakening cointegration relationship. The result is a structured Pair Health Object per pair, updated dynamically, carrying a risk flag (NORMAL / WATCH / ELEVATED / SUSPEND) that a live market-neutral strategy can consume directly. Built on rolling Johansen estimation, OLS hedge ratios, and concurrent Bright Data SERP queries across 10 sector pairs spanning financials, energy, pharma, and payments.
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