What is Pair Trading ? Top 5 Pairs to trade for today !

What is Pair Trade ?
A pairs trade is a trading strategy that involves matching a long position with a short position in two stocks with a high correlation.

Pairs trading was first introduced in the mid-1980s by a group of technical analyst researchers that were employed by Morgan Stanley, the multinational investment bank and financial services company.

A pairs trade strategy is based on the historical correlation of two securities; the securities in a pairs trade must have a high positive correlation, which is the primary driver behind the strategy’s profits.

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