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FT,
A recommendation is to find two stocks ***in the same industry,*** with
similar revenue sources, similar business models, and similar target
audiences. Then run a correlation matrix against their prices. If the two
consistently correlate, then when their prices diverge, long one and short
the other until the prices return to "normal," then get out. This is not a
high-return strategy but it is a consistent one.
Sincerely,
Wes Williams
> -----Original Message-----
> From: Francesco Topino [mailto:francesco.topino@xxxxxxxxxxx]
> Sent: Thursday, February 07, 2002 9:09 PM
> To: omega-list@xxxxxxxxxx
> Subject: Stock Pair Trading
>
>
> Hello,
>
> Does anyone on the list have any experience with stock pair trading? any
> advice on how to learn the basics will be greatly appreciated.
>
> thanks
>
> FT
>
>
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