Pairs Trading

Pairs trading is a strategy that uses two highly correlated financial instruments (eg Coca-Cola and Pepsi) whose price relationship has divergerged outside of the historical range. In buying one and selling the other, the strategy aims to profit from the price reverting back to as the mean trend as the spread between the two converges.

Trading involves substantial risk of loss and is not suitable for all individuals. Past Performance is not indicative of future results.