The Stock Pair Trading Strategy and the Secret of Cointegration

Learn one of the best-kept hedge fund secrets for deploying the stock pair trading strategy – cointegration.  Used by professionals for over 50 years to deliver consistent monthly profits from stock trading, regardless of market direction. It also carries the additional benefit of protection from market crashes and big account drawdowns through the use of hedging.

Click here to watch our video that explains it all:

stock pair trading strategy

Combining Cointegration and Stock Pair Trading for a Winning Combination

Professional traders and hedge fund managers love to use the stock pair trading strategy.  Pair Trading involves simultaneously entering LONG (i.e. BUYING) and entering SHORT (i.e. SELLING) two “paired” securities.  The technique 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*, on a 4:1 leverage basis, over more than a decade.

Add in the use of Cointegrated Stock Pairs and the historical returns look even stronger**.

How PairTrade Finder® Can Help You

Start learning to pair trade stocks long/short today.  Join our 30-minute webinar, free trial, 3-Hour Video Course, eBook and get our Top 30 U.S. Equities Pairs to turbo-charge your potential results straight out-of -the-box. Sign up on this blog’s sidebar or at www.pairtradefinder.com.

Happy Trading!

The PairTrade Finder® Team

* See https://blog.pairtradefinder.com/pair-trading-research-studies-articles/ for studies underlying pair trading’s profitability.

** See https://www.researchgate.net/publication/273959237_Pairs_trading_and_selection_methods_Is_cointegration_superior

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