Recent content by TradePro

Stocks affected by news are avoided when pair trading. When I check the news for many of the stocks in ASX100 that I want to pair, there seems to be quite a few ASX announcements. Are there any particular kind of news that needs to be avoided or any news at all for the stocks that are to be...

Do any of you use 'Percent From Mean' value for deciding which pair trades to take? For instance take a trade only if 'Percent From Mean' is greater than a set percentage, etc. Does 'Percent From Mean' gives an idea of what might be the expected returns if a pair trade was taken?

I have been looking into pairing some of the Real Estate Investment stocks such as SGP, GPT, MGR, WDC etc. These stocks have historically shown high average correlation, around the 80% level for the last year. This is what I am finding a bit strange that the current correlation between SGP...

Thanks SKC. Advice much appreciated ... If I only pair stocks in ASX200 with market capitalization greater than say, 1 Billion, would this substantially reduce the shorting risk? Also, there are some companies that are large market cap but price below a dollar, for eg. Goodman Group, GMG...

Hope you are all having a fun and successful Pair Trading! I have been Pair Trading ASX 200 stocks and have been wondering what sort of risks may be associated with shorting ASX 200 stocks. From risk of shorting, I mean the fact that one takes unlimited upside risk when shorting. Would ASX...

I have been following this thread. What a great source of information its been for a newbie like me... I will like to get some information about pairing indexes. If trading index pairs, what criteria should be used to choose good pairs? Like for instance when stock pairs are chosen one of...