How to Structure a Volatility-based Pairs Trade
Much like traditional pairs trading, a volatility-focused pairs trade hinges on an existing strong correlation between the two underlyings
Much like traditional pairs trading, a volatility-focused pairs trade hinges on an existing strong correlation between the two underlyings
Looking ahead into 2024, the long tech versus short financials pairs trade offers a compelling risk-reward dynamic, especially with the stock market trending toward all-time highs
The soybean/corn ratio peaked in late August, but has since retraced back toward its historical average, thus creating a tidy profit for pairs traders that pounced on this opportunity in late summer
The Gold/Silver ratio started 2022 trading at roughly 78, but has since rallied all the way up to 93, and the relative strength in the ratio appears to be rooted in silver weakness.
Cryptocurrency volumes on futures exchanges are rising and this emerging sector is now opening up to a variety of new futures trading/investing approaches.
On the first day of August 2019, President Donald Trump announced via twitter that his ongoing frustration with the slow pace of trade negotiations with the Chinese had forced him to consider raising tariffs against the world’s second-largest economy, yet again. Set to take effect on Sept. 1, the latest round of tariffs would encompass … Continued
Today’s post outlines how pairs traders often utilize equity index futures. Read on to learn more…