An Energy Pair Trade To Take Advantage Of Current Turmoil

One of the oldest statistical arbitrage techniques on Wall Street is the pairs trade. The concept behind the strategy is simple – find two stocks that have historically moved together and then when they diverge, take a long/short set of positions and wait for the correlations to reassert themselves. While pairs trading is conceptually simple, it has a long history of being successfully used by Wall Street firms, hedge funds, and many other institutional investors. The only real barrier to entry on the strategy is being able to identify the…

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An Energy Pair Trade To Take Advantage Of Current Turmoil

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