As we step into the second half of 2023, the financial landscape seems to be shrouded in a cloud of uncertainty, with many fund investors and fund managers admitting they don't know where to go...

What is Mean Reversion?

Mean reversion is a theory used in finance that suggests asset prices and returns eventually reverts to their long-term mean or average.To put in similar terms, mean...

Not sure if the market will continue up?

Nervous about the risks presented by this rising market?

Let’s talk Pair Trading...

by Rob Friesen

Caterpillar Inc: CAT (NYSE) vs. Deere &...

We recommend reading What is Pair Trading before the rest of this article.

We think of the combined stocks as a “unit”.  We can either be Long or Short the unit or the pair....

The concept of pairs trading, or relationship-based trading, comes from Morgan Stanley, where a group of researchers first developed the strategy in the 1980s. Simply put, pairs trading requires...