Posts Tagged "statistical arbitrage"


Pairs Trading is a market-neutral trading strategy where a long position is matched with a short position in a pair of highly correlated securities, such as two different ETFS, stocks, commodities, etc. Some people refer to it as a statistical arbitrage or convergence trading strategy. The profit motive of pairs trading is to get long the security that is underperforming and to sell short the one that is overperforming. The trader's...

Read More