Pairs Trading: Conclusion
  1. Pairs Trading: Introduction
  2. Pairs Trading: Market Neutral Investing
  3. Pairs Trading: Correlation
  4. Arbitrage and Pairs Trading
  5. Fundamental and Technical Analysis for Pairs Trading
  6. Pairs Trade Example
  7. Pairs Trading: Risks
  8. Disadvantages of Pairs Trading
  9. Advantages of Pairs Trading
  10. Pairs Trading: Conclusion

Pairs Trading: Conclusion

Pairs trading is a market-neutral investment strategy that seeks profits from the difference in price change between two related instruments. Having well-researched strategies, based on accurate historical modeling and the proper interpretation of results, can help ensure that traders identify truly correlated pairs, locate high-probability trading setups, and use proper money management to exit trades and look for the next pairs trading opportunity.

  1. Pairs Trading: Introduction
  2. Pairs Trading: Market Neutral Investing
  3. Pairs Trading: Correlation
  4. Arbitrage and Pairs Trading
  5. Fundamental and Technical Analysis for Pairs Trading
  6. Pairs Trade Example
  7. Pairs Trading: Risks
  8. Disadvantages of Pairs Trading
  9. Advantages of Pairs Trading
  10. Pairs Trading: Conclusion
RELATED TERMS
  1. Market Neutral

    A strategy undertaken by an investor or an investment manager ...
  2. Trading Strategy

    A set of objective rules designating the conditions that must ...
  3. Major Pairs

    The four forex pairs which are considered to be the most heavily ...
  4. Profit Target

    A predetermined point at which an investor will exit a trade ...
  5. Currency History

    The historical values of a base currency in relation to the values ...
  6. Correlation

    In the world of finance, a statistical measure of how two securities ...
RELATED FAQS
  1. What is the difference between investing and trading?

    Investing and trading are two very different methods of attempting to profit in the financial markets. The goal of investing ... Read Answer >>
  2. How do I find positive correlation in the stock market?

    Learn how positive correlation is found in the stock market, how correlation is calculated and how positive correlation is ... Read Answer >>
  3. How is correlation used differently in finance and economics?

    Take a look at the similarities and differences between how statistical correlation is applied in economics as opposed to ... Read Answer >>
  4. How are negative correlations used in risk management?

    Learn about risk management and how negative correlations between assets are used to diversify and hedge risk associated ... Read Answer >>
  5. How do I start using technical analysis?

    Technical analysis is a method of analyzing securities by evaluating current and historical price and/or volume activity. ... Read Answer >>
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