The pair generated a profit of Rs. 15,000/- within 2 days on a capital of Rs. 1.3 Lakhs. This equates to +12.5% gain on capital in 2 days.
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Author: PairTrade
KOTAKBANK – INDUSINDBK Hit Target1 PR 1.667 Profit 20,000/-
The pair generated a profit of Rs. 20,000/- within 14 days on a capital of Rs. 2 Lakhs. This equates to +10% gain on capital in 14 days.
What is Pair Trading?
The pairs trade or pair trading is a market neutral trading strategy enabling traders to profit from virtually any market conditions: uptrend, downtrend, or sideways movement. This strategy is categorized as a statistical arbitrage and convergence trading strategy. The pair trading was pioneered by Gerry Bamberger and later led by Nunzio Tartaglia’s quantitative group at […]
Terms used in Pair Trading
Certain Terms/Abbreviations are used in Pair Trading. Find below some of the important terms used on this site. Price Ratio (PR) Price Ratio is calculated by dividing the price of the first stock by the second. Mostly by High value stock by Low value stock Example: KOTAKBANK-HDFCBANK pair PR = HDFCBANK / KOTAKBANK 1394.05/804.7 = 1.7324 […]