
We’ll cut to the chase. Extreme volatility juices cointegrated stock pairs trading returns, and market crashes can bring special opportunites. We can show you a lot of research studies that support this assertion.
That’s why professional traders and managers are attracted to the stock pair trading strategy. Pair Trading, which involves simultaneously entering LONG (i.e. BUYING) and entering SHORT (i.e. SELLING) two “paired” securities, provides protection from market crashes, controlled risk, low correlation to the market averages and ability to generate significant and consistent returns. Multiple recent research studies have demonstrated returns to be in the range of 2%-4% per month*,
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