Startrader

Which will perform better? $MCD vs $SBUX #SPREAD #PAIROPTIONS

NYSE:MCD   MCDONALD'S CORP
33 0 1
Pair Options Forecast: SBUX             will outperform MCD             in the next 2 trading day
ANALYSIS: Cointegration, Correlation and Technical
Strategy: Elliot Wave Principle http://www.bitcoinprice.mobi/prediction/

Trading pairs MCD             vs SBUX             which has moved from its correlation can be done based on cointegration or technical analyzing the prices of the stock pairs and tries to profit from the mean-reversion proces.

Cointegration (right chart): look for the divergence pairs that have moved away from each other and then back together in a regular pattern.

Technical Analysis:
McDonald"s move together very closely and has a maximal correlation with Starbucks             . This means it's profitable when the relative value between the two assets is perturbed from equilibrium, you can take a contrarian position and profit from the spread trading as the prices revert back to their long-run mean.

Ciprian,
http://google.com/+CiprianPopaIoan
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ