Tag Archives: Best Stock Pairs To Trade

Stock Pair Trading the Top 30 Nov 2020 Vintage: First Five Weeks’ Results

For those of you who are new to this site, stock Pair Trading involves simultaneously entering LONG (i.e. BUYING) and entering SHORT (i.e. SELLING) two “paired” stocks.

stock pair trading

Why Pair Trade Stocks?

Stock Pair Trading has been shown to provide 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**.

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EXAMPLE PAIR TRADE OF THE MONTH SEPT 2020

LCI Industries Inc. (LCII:NYSE) vs. Polaris Inc. (PII:NYSE) September was a good month for the signals generated by the August 2020 Vintage of our Top 30.   As an example pair trade, we want to drill down on a pair that has consistently delivered profitable trades over the last year, that of LCI Industries Inc. (LCII:NYSE) vs. Polaris Inc. (PII:NYSE).  The latest trade called on the pair didn’t disappoint, delivering $578 Net Profit and a 15% return on margin in 4 days.  Here is a detailed trade entry and exit analysis for this example pair trade: Video: Pair Trade of the Month Sept 2020

example pair trade

Backtest Results:

In backtesting over the three years prior to 24 August 2020,

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Best Stock Pairs: PTF PRO Trade of the Month Aug 2020

KB Financial Group vs. Sumitomo Mitsui Financial Group $926 in 5 Market Days ($10,000/leg) 23% Return on Margin (5:1 CFD leverage) Looking for the best stock pairs to trade? Subscribe to PairTrade Finder PRO v2 and our curated Top 30 U.S. Equities Pairs. Start a free trial of our software platform and you will receive a 3-Hour Video Training Course taught by a professional pair trader for free. Video: Trade of the Month August 2020 Best Stock Pairs Backtest Results of KB/SMFG One of Our Best Stock Pairs:

In backtesting over the three years prior to 1 April 2020,

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