Finding spread trading opportunities

Which market would you spread VIX against?

 

I haven't traded them yet, but my first thought is spread front month against back month. Second idea is to spread against spx.

 

VIX calendar spreads, VIX vs ES, etc

 

There is very mild interest regarding etf's on these forms but XIV, short volatility seems good.. This inverse product has been around since 2011.
It can be hedged by shorting risk-on as well.
There are probably threads on these vol etfs around that I should read.

I have not been "on to this , using it and making money from it" but seems like a good tool
to have.

Look at this one, XIV/EEM , volatility neutral, over the last 2 years or so. If volatility spikes then short EEM will probably become more volatile as well.
Some degree of protection anyway (better than short SPY) when volatility spikes.

Interesting breakout in that chart as volatility is so low even as EEM has pulled back , Greece is a problem, and , US rate hike possibilities exist.


Once again, i look at that chart and say how the hell is that random. Others have gotta be trading that.

 

That's a very interesting trade eurusdzn. Probably a good event trade considering recent events.

 

https://www.pairtradinglab.com

Another pairs/cointegration scanner. Has a free and paid section. Can do "thousands of pairs." Worth a look.

 

Thanks for sharing the link! I haven't looked in quite awhile, but a couple years ago I was looking for a cointegration calculating tool, but never had any luck really.

 

http://www.elitetrader.com/et/index...living-as-a-professional-trader.241603/page-5

 

Arb Maker is now defunct. Does anyone here know of similar software to forecast mean reverting of spreads and butterflies?