This morning I mentioned to you that I only have 1 LOCAL pair (market neutral) idea as part of my research report. That idea, published at 07:02am (before the SSW SENS) was a buy/long on AMS vs a short/sell on SSW. Original slide attached on the left.
As noted: "In terms of single stocks, one of my ideas is a local pairs (market neutral) trade idea from the commodities /mining sector." (See attached).
In a market that's down, the pair is up by 5.11% while also outperforming the Top 40 Index by +8.2%.
In a market that's down, considering a pairs strategy reduces the need to take index level directional bets while more importantly helping to protect capital and possibly generate alpha.
For a while, my intention has been to focus on pairs and get familiar with the mechanics thereof (My focus on this strategy has been increasing).
While I'm relatively new to the strategy, my trading desk colleagues have years of experience in identifying such opportunities.
If your trading services provider isn't highlighting these kind of real-time opportunities and insights and you enjoy these posts, why not get in touch with us today?
Edit: Original slide/idea available on request.
As noted: "In terms of single stocks, one of my ideas is a local pairs (market neutral) trade idea from the commodities /mining sector." (See attached).
In a market that's down, the pair is up by 5.11% while also outperforming the Top 40 Index by +8.2%.
In a market that's down, considering a pairs strategy reduces the need to take index level directional bets while more importantly helping to protect capital and possibly generate alpha.
For a while, my intention has been to focus on pairs and get familiar with the mechanics thereof (My focus on this strategy has been increasing).
While I'm relatively new to the strategy, my trading desk colleagues have years of experience in identifying such opportunities.
If your trading services provider isn't highlighting these kind of real-time opportunities and insights and you enjoy these posts, why not get in touch with us today?
Edit: Original slide/idea available on request.
