No plagiarism You would start by introducing the concept of pairs trading stra

No plagiarism
You would start by introducing the concept of pairs trading stra

No plagiarism
You would start by introducing the concept of pairs trading strategy and give an overview of the different “flavors” of such strategy (namely, (1) distance-based and (2) cointegration-based). Then you elaborate on one specific method: cointegration-based pairs trading strategy. In this regard, explain the concept of cointegration and how it is applied in pairs trading, namely what does the trade consist of and how is cointegration used to determine trade signals (when to enter a trade and when to exit). Also address the issue of pair selection and describe the potential challenges at that level.

× How can I help you?