In finance, statistical arbitrage (often abbreviated as Stat Arb or StatArb) is a class of short-term financial trading strategies that employ mean reversion models involving broadly diversified portfolios of securities (hundreds to thousands) held for short periods of time (generally seconds to days). These strategies are supported by substantial mathematical, computational, and trading platforms. In fact, statistical arbitrage is one of the easiest strategies that one can use out there. The profits made using the strategy are not as much, despite it is one way you are certain that you could make huge amounts of money. Statistical arbitrage (SA) is a complex word used to refer to pairs trading. It is a simple way of using hedging as a strategy.