What is Pairs Trading and Pairs Trading Strategy in NSE

Pairs Trading Strategy

Pairs trading is a non-directional, relative value investment method. It aims to identify two similar companies or funds whose equity stocks are now trading at a price relationship that is outside of their historical trading range. This investment technique entails purchasing the discounted security and selling the overvalued security while remaining market neutral. We also … Read more

Correlation Coefficient Indicator Formula, Example

Statistically speaking, we say two sets of data or two variables as correlated if there exists a statistical relationship (linear interdependence) between them. If two data sets or variables have a strong statistical relationship between them, we identify them as highly correlated. The Correlation Coefficient summarizes these two data sets into a single number between +1 … Read more

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