Pairs Trading Meaning Example How Does This Strategy Work
Pairs Trading Definition This type of strategic trading option is a combination of both long positions and short positions of stocks that are correlated with each other. It is a market-neutral strategy based on not just statistical but technical analysis as well solely to generate potential returns that are market neutralMarket NeutralMarket neutral is an investment strategy or portfolio management technique where an investor seeks to negate some form of market risk or volatility by taking long and short positions in various stocks to increase ROI achieved by gaining from increasing and decreasing prices from one or more than one market....