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Pair Trading Strategies Overview by Kapil is a document available to read on EtoBox.
What is Pair Trading Strategies Overview about?
1) Pair trading involves going long on the relatively undervalued stock in a pair and short on the relatively overvalued stock, with the goal of profiting when the prices converge. 2) There are two main methods for pair trading - distance trading and cointegration. Distance trading measures the distance between normalized prices of two assets, while cointegration identifies pairs that have prices linked by a cointegrating relationship. 3) For distance trading, prices are normalized and the difference is cal
- Author
- Kapil
- Language
- EN