Category Archives: Trading Tips

Stock Pair Trade of the Month SEPT 2022

October 4, 2022 9:02 am |
Asbury Automotive Group vs. BorgWarner $353 and 18% Return on Margin in 8 Market Days!

September sees us visit a new SLOW 60 U.S. Equities Pair for a great stock pair trade. 

Asbury Automotive Group (NYSE:ABG) vs. Borg Warner (NYSE:BWA). These auto parts suppliers set up an infrequently available pair trade that delivered the goods quickly and efficiently.  

$353 in 8 days, with no drawdown. ($5k/leg, 5:1 CFD leverage) 

We wish they were all so smooth…

Watch our video as pro stock pair trade master Pedro Alonso Calvo shows you how this trade setup ticked (almost) all the boxes and was a slam dunk entry:

High-Probability Trading Signals Straight to Your Inbox www.pairtradefinder.com Stock Pair Trade for Income Using PairTrade Finder’s SLOW 60 Cointegrated U.S. … Read More →

Top US Equities Pairs: Trade of the Month May 2018

June 8, 2018 2:47 pm |

Eni (E:NYSE) vs. Sasoil (SSL:NYSE)

$708.03 in 25 days on $10,000/leg.

7.1% Return on Nominal Leg Value, 21.3% on CFD margin.

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Top 30 US Equities Pairs: Trade of the Month April 2018

May 2, 2018 9:21 pm |

Continental Resources Inc. (CLR:NYSE) vs WPX Energy, Inc. (WPX:NYSE)

Profit of $800.03 in 30 calendar days on $10,000/leg.  That’s 8.0% on nominal leg value and up to a 24.0% return on CFD margined equity (max 6:1).

Summary Profiles (Source: Yahoo! Finance, Company websites)

Continental Resources, Inc.explores for, develops and produces crude oil and natural gas properties in the north, south, and east regions of the United States.The company sells its crude oil and natural gas production to energy marketing companies,

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Top 30 US Equities Pairs: Trade of the Month March 2018

April 3, 2018 5:15 pm |

Precision Drilling Corporation (PDS:NYSE) vs Superior Energy Services, Inc. (SPN:NYSE)

Profit of $925.30 in 48 calendar days on $10,000/leg.  28% return on CFD margin (6:1 leverage)

Summary Profiles (Source: Yahoo! Finance, Company websites)

Precision Drilling Corporation provides oil and natural gas drilling and related services and products. The company operates in two segments, Contract Drilling Services, and Completion and Production Services. The Contract Drilling Services segment offers onshore well drilling services to exploration and production companies in the oil and natural gas industry.

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Top 30 US Equities Pairs: Trade of the Month Feb. 2018

February 28, 2018 4:16 pm |

Apogee Enterprises Inc (APOG:NASDAQ) vs Masonite International Corporation (DOOR:NYSE)

Resulting Gross Profit of $1,328.68 in 61 calendar days on $10,000/leg.  That’s 13.3% on nominal leg value and up to a 40% return on CFD margined equity (max 6:1).

Summary Profiles (Source: Yahoo! Finance, Company websites)

Apogee Enterprises, Inc. designs and develops glass products and services in the United States, Canada, and Brazil. The company operates through four segments: Architectural Glass, Architectural Framing Systems, Architectural Services,

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Top 30 US Equities Pairs : Trade of the Month January 2018

January 31, 2018 3:25 pm |

Lakeland Financial Corporation (LKFN) vs. WSFS Financial Corporation (WSFS)

Resulting Gross Profit of $494.63 in 14 calendar days on $10,000/leg.  That’s 4.9% on nominal leg value and approx. 25% return on CFD margin equity.

LKFN is a small bank holding company offering consumer banking and wealth management services to retail customers and is based in Warsaw, Indiana.  It specialises in real estate and agribusiness loans.  The company operates 49 branch offices in North and Central Indiana.

Closing Share Price (LKFN:NASDAQ) as of 29 January 2018: $48.42

LKFN Valuation Measures (Source: Yahoo!

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Tips on Setting Up My Watch List – Avoiding Industry and Single Stock Concentration

May 17, 2017 3:49 pm |

Your watch list will act as your home screen where you can evaluate pairs that have back tested through the Pair Trade Finder system.  After you have gone through the process of finding pairs to evaluate, back testing them, and adding them to the system, your pairs will be viewable on your watch list. There are a few important issues you should consider when developing a portfolio of stock pairs to watch, which include the number of specific industry pairs you should monitor, single stock concentration and how to anticipate a signal.

After you have gone through the process of finding companies that are in similar industries,

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Pair Trade COH Versus TJX

May 2, 2017 4:15 pm |

The Pairtrade Finder analytic generated a signal to purchase TJX Companies and Sell/short Coach.  Both companies are in the retaill space.  Coach surged on better than expected earnings, but is likely to run into resistance after climbing nearly 10%, as sales missed expectations.  TJX is scheduled to release its financial results in 2-week.  The watchlist shows the levels to enter the trade, as the stretch reached 2.7 standard deviations above the 100-day moving average.

The backtest of the two stocks shows that over the past 3-years 8-signals were generated with a stretch of 2.7 standard deviations for an entry criteria,

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Pair Trade BBT Versus CFG

April 24, 2017 3:59 pm |

The Pairtrade Finder analytic generated a signal to purchase BB&T Corp and Sell/short Citizens Financial Corp.  Both companies are in the financial space.  Both stocks were buoyed following better than expected earnings, although the CFG was definitely a larger surprize.  BB&T was upgraded and should recoup some of its recent losses versus CFG.  Both companies released their earning during the week ending the 21st.   The watchlist shows the levels to enter the trade, as the stretch reached 2.7 standard deviations below the 100-day moving average.

The backtest of the two stocks shows that over the past 3-years 4-signals were generated with a stretch of 2.7 standard deviations for an entry criteria,

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Look At That Divergence! Are Target and Walmart a Pair Trade?

April 19, 2017 4:47 pm |
Based on the last year of price history, it would seem there is quite a divergence between Target (orange) and Walmart (white) share prices (see Bloomberg chart below). The pairs look fairly correlated, and there is a large divergence, so should you expect a return to the mean, and short Walmart and go long Target? divergence 419

Upon further consideration, this would be a dangerous trade to take.  First the y-axes are not synchonised and the prices have not been re-based to zero.

If one rebases the prices to zero (see below), then one can see that over the past year there is little correlation between the two pairs and that the divergence does not necessarily indicate any potential reversion to the mean.

… Read More →