PAIRS TRADING MADE SIMPLE

WHAT IS PAIRS TRADING?

A strategy that buys one stock that is undervalued and sells another stock that is overvalued. The strategy is considered "market neutral" and is designed to make money in both bull and bear markets. Investors are fascinated with market-neutral strategies because of the possibility of achieving consistent returns without taking a lot of risk. It also offers a very low correlation to the broader market.

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