Once a pair is chosen, a screen is shown where:

1. Reference indicating the graphs displayed. In this first case the graph is displayed of the price of Metrovacesa divided by the price of Repsol.

2. Space where the stocks that are analysed in the graph can be changed.

3. Space that details:

    a. The number of sessions displayed in the graph (from one month to three years).
    b. If the graph displays data referring to each of day, each week or each month.

4. Space that displays a series of data on the indicators that accompany the graph above (numbered as 6)

	a.	The first refers to the time period for the first moving average, as well as the colour chosen to display it.
	b.	The same information referring to the second moving average.
	c.	There is the possibility of adding Bollinger bands, choosing their colour, their time period and the size of the standard deviations.

5. Area where a series of data are shown on indicators that can be graphed in the space below (numbered as 7)

	a.	Volume crossed in the session or combination of sessions (depending on 3b).
	b.	RSI, where the time period can be set. In general, it is usually understood that if the RSI is above 70 the stock is overbought and is going to fall. Similarly, if the RSI is below 30, it is understood that the stock is oversold and is going to rise.
	c.	MACD, where the parameters that control the indicator can be set. It is usually understood that when the stock in black is positive, the stock is rising, and when it is negative the stock is falling.
	d.	ADX, where the parameters that control the indicator can be set. This indicator tries to establish whether or not there is a trend, rather than the direction of the trend. It is usually understood that a value below 20 indicates the absence of a trend, between 20 and 40 a trending market, and above 40 is a weak sign of the current trend.
	e.	Stochastic, where the parameters that control the indicator can be set. It is usually understood that with a rise above the level of 80 the stock will tend to fall, and with a fall in the level below 20 the stock will tend to rise.

The second or third graph can also be chosen:

1. Indicates which graphs are displayed. In this case the evolution of the first stock of the pair, Metrovacesa, is shown.

2. Space where different types of graphs can be established, as follows:

	a.	Ohlc bar: bar with the opening, high, low and closing price for each session.
	b.	Hlc bar: bar with high, low and closing price for each session.
	c.	Line: line that joins the closing prices of the stock for each session.
	d.	Cdl: wave graph

In the fourth graph:

You can see the percentage evolution of the two stocks selected, as well as the evolution of the sum of the volumes of both stocks.

In the fifth graph:

1. Space where the different time periods can be detailed which will be used later to calculate the different statistics in point 2.

2. Space that displays the following statistics:

• Correlation: result of calculating the correlation of the two stocks selected in the different time periods.

  Note that the correlation is a statistical average that always lies between –1 and 1, which in this case tries to establish the extent to which the evolution of one stock is explained by the evolution of the other. Thus, for example:

  	a.	A correlation of 1 implies that 100% of the movement of one of the assets can be explained by the movement of the other.
  	b.	A correlation of –1 implies that 100% of the movement of one of the assets can be explained by the movement of the other, although one movement will be the inverse of the other.
  	c.	A correlation of 0 implies that (in linear terms) knowing the movement of one of the assets does not provide any information about the movement of the other asset.

  A high correlation is usually related to a stable relationship between two assets, making possible the investment in them using pairs.

• Average Ratio: is the average value of the ratio of the two assets based on the time period chosen.
• 1 standard deviation: it is the value of the standard deviation of the ration with respect to its average calculated in the previous point, based on the time period chosen.
• 2 standard deviations: is twice the value above. Normally it is taken as reference to know if the pair is overvalued or undervalued. If the value of the ratio is more than two standard deviations above the average value, it is considered opportune to sell the pair (in the expectation that the ratio will fall back towards its average), and similarly, if the value of the ratio is more than two standard deviations below its average value, it is considered opportune to buy the pair (in the expectation that the ratio will increase to its average).
• Relative beta: given that we only know the movement of the first asset of the pair, relative beta is the name given to the value by which we would multiply this movement to make the best estimate of the movement of the second asset. This beta will have greater validity as the correlation increases.
• Asset 1 beta against the index: with the same idea as beta above, it is the value by which the relative movement of the index will be multiplied to make the best estimation of the movement of the asset.
• Asset 2 beta: the same as above for asset 2.
• Volatility of asset 1: given the returns of asset 1, the standard deviation of the returns are calculated and then analysed (that is, multiplying the amount by the square root of 252).
• Volatility of asset 2: the same concept explained in the point above for asset 2.