The Research For Company Y’s Community Arbitrage Strategy Drives By Data

Commodity market has experienced the development from the spot trading to the long-term trade contract, to the futures trading, from the nonstandard spot commodity to the current standard futures contract, during which the arbitrage has been accompanied by the development of the commodity markets.Company Y, as a commodity trading company, not only reduces the risk of commodity market volatility, also greatly increases the size of the company, from the investment transactions of simple buy and sell, to the appropriate selling hedging, to the current arbitrage. At present, Company Y has become a mature commodity trading enterprise. However, with the slacken China’s economic growth, industrial manufacturing enterprises’ serious overcapacity, a demand for commodities is decreasing. Also in the spot market, commodity prices are very clear, the spot trading shows a trend of gradually shrink. Company Y’s business development is facing a very serious test.Under the background of the age of big data, only to explore deep data can make more profitable opportunities, especially the research and application of the commodity arbitrage, meanwhile, arbitrage is based on the data. Commodity arbitrage strategy research based on the data driving takes Company Y as an object. To find and form the relevant arbitrage from changes in the data and to find the relevant economic data that affects the commodity market estimates the tendency of the commodity. Then according to the tendency of the commodity, to choose the related arbitrage model, which will become the motive force of sustainable development of Company Y.In this paper, the arbitrage strategy mainly studies three aspects. Firstly, the arbitrage strategy on the basis of the futures and spot, Company Y is a commodity trading enterprise mainly on spot, so the arbitrage for Company Y is very important. According to the operation characteristics of Y Company, this article makes the systematic arbitrage model and develops related arbitrage strategy based on the cases. Secondly, intercity arbitrage strategy on the basis of the different markets, using metal market as an example, the paper focus on the arbitrage opportunity of foreign market and domestic market develops intercity arbitrage model and tracks transaction data of two or more markets for arbitrage opportunities, to accomplish the intercity arbitrage. Thirdly, the research on the economic data and arbitrage, the paper focus on the research of impact of PMI, PPI, CPI and US dollar on the commodity markets. All these are the important factors that affect commodity market, with high correlation, positive correlation or negative correlation, which estimates the commodity market trends, to choose different arbitrage trading and operations.