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...