stock pair trading performance
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stock pair trading basics

Basics

Pair Trading is robust strategy with stunning fundamental edge!
Capitalizing on short-time inefficiencies.

stock pair trading is robust strategy

Robustness

Reliable strategy of professional traders
Based on market fundamentals
Making profits more than 60 years!

stock pair trading profits

Performance

Make net profit 20% p.a. with controlled risk!
Learn essential part of professional's portfolio!
Let your money make more money!


Stock pair trading highlights

stock pair trading hedge against market fluctuations

Stock pair position is formed by entering long and short position in two stocks of the same sector. This strategy creates a powerful hedge against the sector and the overall market fluctuations.

If the whole market crashes, and the two stocks plummet along with it, the trade should result in a gain on the short position and a negating loss on the long position, leaving the profit close to zero in spite of the large move.

Many studies have shown this style to deliver superior returns with lower risk than any other style of trading.

stock pair trading is market neutral strategy

Stock pair trading is a market neutral strategy capitalizing on short-time market inefficiencies.

The strategy is based on the fact that the ratio of prices of two suitably chosen (correlating) shares is long-term stable and oscillates around the average value. If (for whatever reason) ratio comes outside the normal area, you can speculate with high success rate that ratio will return to the mean value.

stock pair trading is self-funding strategy Stock pair trading is a substantially self-funding strategy, since the short sale proceeds may be used to create the long position.
stock pair trading history

The pair trading was pioneered by Alfred Winslow Jones in 1950s, but boom came with Gerry Bamberger and later Nunzio Tartaglia’s quantitative group at Morgan Stanley in the 1980s. A famous pairs trader was hedge fund Long-Term Capital Management.

Today, pair trading is essential part of trading portfolio of every bank, hedge fond and professional trader.

Strategy delivers consistent profits with minimum risk for more than 60 years!


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