The establishment of a long position in one stock and a short position in another stock at the same time. A pairs trade minimizes the effect of larger market trends and emphasize the performance of one stock relative to another.
Related information about pairs trade:
- Pairs trade - Wikipedia, the free encyclopedia
The pairs trade or pair trading is a market neutral trading strategy enabling traders to profit from virtually any market conditions: uptrend, downtrend, or sideways ...
- Pairs Trade Definition | Investopedia
The strategy of matching a long position with a short position in two stocks of the same sector. This creates a hedge against the sector and the overall market that ...
- Silver Wheaton Versus Royal Gold: Pairs Trade Options - SLV ...
Sep 17, 2012 ... While this market-neutral strategy is not risk-free, when properly constructed, the risks involved in a pairs trade are lower than those of a ...
- Pairtrader.com
Pair Trading is a site dedicated to providing the tools and data necessary for the statistical arbitrage trader.
- Three Ways to Build a Pairs Trade - SchaeffersResearch.com
At its essence, a pairs trade is simply two separate-yet-related option trades which are managed as a single position. Generally, we're talking about a bullish ...
- A Basic Introduction to Pairs Trading
Apr 21, 2008 ... It is possible that both sides of the trade can lose, so know how much you are willing to lose prior to executing your first pairs trade. Good luck!
- Long Gold Miners/Short S&P 500 ETF Pairs Trade - Seeking Alpha
Long Gold Miners/Short S&P 500 ETF Pairs Trade. August 31, 2012 by: SL Advisors | about: GDX, includes: GGGG, GLD, IAU, IVV, SH, SPY, VOO. Disclosure: I ...
- Quantopian - exhaustive pairs trade screen?
Sep 11, 2012 ... I am curious if anyone has considered the problem of an exhaustive pairs trade screen? As I understand, Quantopian has N ~ 10^3 symbols in ...