The GLD/ FXE Spread

As promised yesterday here'e the ETFR view of the GLD/FXE spread looking back 6 months.  The mean reversion behavior is apparent on the A) Relative Price Change chart as well as section B.  While this isn't a barn burner in terms of P&L returns, the linearity correlation is attractive and tends to trade on an 8 day cycle.  This is more of a revenue stream type of pair trade and the low drawdown reflects a no stop trading milieu.  Had we activated the EQ stop (no trade executed if equity curve below the R2 slope) the P&L return jumps to 26%.  Note the trade status as of today's close.

Related posts:

1. XLB / DBC Skew
2. FXE / EZU Pair Trade
3. GLD / GDX Spread Eases
4. EUR/USD Dipper Failure?
5. SLV at New High