Analyze a pairs trading opportunity between two correlated securities: 1. Fundamental Linkage: - Business model similarity - Revenue/geographic overlap - Why should these trade together? 2. Historical Relationship: - Correlation (30D, 90D, 1Y, 3Y) - Cointegration test results (ADF test p-value) - Beta of stock 1 vs. stock 2 - Half-life of mean reversion 3. Spread Analysis: - Current spread (ratio or difference) - Z-score vs. lookback period - Percentile rank (1Y, 3Y) 4. Entry/Exit Parameters: - Entry threshold (z-score) - Exit threshold (z-score) - Stop-loss threshold - Maximum holding period 5. Risk Metrics: - Historical max spread widening - Spread volatility - Correlation breakdown events 6. Trade Sizing: - Dollar neutral position sizes - Beta-adjusted hedge ratio - Expected P&L range 7. Catalyst Check: - Upcoming earnings dates - Any fundamental divergence reasons - Sector rotation considerations