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Hi, mooers!
The "Trading idea competition: What is pairs trading strategy?" event has concluded. Thanks for your active participation in voting, sharing, and discussing this topic. We are excited to share with you some inspiring ideas about pairs trading strategy.
*Winners will be announced at the end of this post.
According to the 395 votes we received, it appears that over 60% of our mooers are unfamiliar with the pairs trading strategy, and...
The "Trading idea competition: What is pairs trading strategy?" event has concluded. Thanks for your active participation in voting, sharing, and discussing this topic. We are excited to share with you some inspiring ideas about pairs trading strategy.
*Winners will be announced at the end of this post.
According to the 395 votes we received, it appears that over 60% of our mooers are unfamiliar with the pairs trading strategy, and...
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There are several instances when a positive catalyst for one security can be a negative catalyst for another type of security. This can happen for many reasons, such as macroeconomic factors, competition, or intra market mechanics. Here are a few examples of inverse trade pairings.
Competition
Go Long: $ $Advanced Micro Devices(AMD.US$
Go Short: $ $Intel(INTC.US$
These two are in the semiconductor space. This sector is in full rally mode, so going short on either of t...
Competition
Go Long: $ $Advanced Micro Devices(AMD.US$
Go Short: $ $Intel(INTC.US$
These two are in the semiconductor space. This sector is in full rally mode, so going short on either of t...
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The long stock would be $Bruush Oral Care(BRSH.US$. First its goal is to regain compliance over a 1.00. Second it has a new line of products to boost its next ER. Third the upside beats the downside. 500% in gains.
The short stock would be $MoonLake Immunotherapeutics(MLTX.US$ It has just seen its highest run. Once it gets above 50.00 its loses investors interest.
The short stock would be $MoonLake Immunotherapeutics(MLTX.US$ It has just seen its highest run. Once it gets above 50.00 its loses investors interest.
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Date: 6/28/2023
Charting Update Counter: 2
Good Morning Everyone!
I hope your portfolios are in the green with tendies in your pocket and ready for the challenger approaching: Jerome Powell.
There are two companies I think I will make follow up Deep Dives for. $Xiao-I(AIXI.US$ and $Fisker(FSR.US$. You should do your own research, but personally I think FSR is due for a run-up and I might take a position ahead of Dive research. I don't recommend this, as learn...
Charting Update Counter: 2
Good Morning Everyone!
I hope your portfolios are in the green with tendies in your pocket and ready for the challenger approaching: Jerome Powell.
There are two companies I think I will make follow up Deep Dives for. $Xiao-I(AIXI.US$ and $Fisker(FSR.US$. You should do your own research, but personally I think FSR is due for a run-up and I might take a position ahead of Dive research. I don't recommend this, as learn...
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A pairs trade is a tactic that involves buying one asset while simultaneously selling another highly correlated asset in order to potentially benefit from price fluctuations between the two assets. This strategy may be helpful in capitalizing on market trends and reducing market volatility risks. We welcome mooers to participate in this competition and share their trading ideas.
The rules are pretty simple:
Step 1: Identify two assets. It...
The rules are pretty simple:
Step 1: Identify two assets. It...
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for the short i actually picked tesla and and already sold after a month asy it went from 154 to 258.45 after selling it today.
For the long i picked mobile eye MBLY as it just had its ipo a few months back and has almost doubled. I did tesla and made the profit while mbly will grow as autonomous driving vehicles become a thing of the future
For the long i picked mobile eye MBLY as it just had its ipo a few months back and has almost doubled. I did tesla and made the profit while mbly will grow as autonomous driving vehicles become a thing of the future
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I have been pretty busy this whole time, so I just read, comments but don't post regularly. Anyway, I am back. So, for this part, I am gonna try to summarize the key takeaways about paris trading after reading some websites and articles.
1. The logic. (source: Pairs Trading - A Real-World Guide - AlgoTrading101 Blog）
"The aim of pairs trading is to bet that, if the prices of 2 assets diverge, they will converge eventually."
So, for exampl...
1. The logic. (source: Pairs Trading - A Real-World Guide - AlgoTrading101 Blog）
"The aim of pairs trading is to bet that, if the prices of 2 assets diverge, they will converge eventually."
So, for exampl...
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Go short: $Gold Trust Ishares(IAU.US$
Go long: $SPDR Gold ETF(GLD.US$
Reasons for the above strategies
When finding the perfect pair trade, the best assets pair should have a correlation of 1 or -1. This will allow us to create arbitrage opportunity by taking advantage of the mispricing by the market.
So I picked 2 gold ETF. Both of them by right should be moving at the same rate. Which they are most of the time ...
Go long: $SPDR Gold ETF(GLD.US$
Reasons for the above strategies
When finding the perfect pair trade, the best assets pair should have a correlation of 1 or -1. This will allow us to create arbitrage opportunity by taking advantage of the mispricing by the market.
So I picked 2 gold ETF. Both of them by right should be moving at the same rate. Which they are most of the time ...
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Step 1: Identify two assets. Step 2: Choose one to go long, and the other one to go short.
Tesla: short; Twitter: long
Step 3: Provide detailed explanations for your choices.
In January 2022, rumour was running wild that Elon Musk, CEO of Tesla, was buying in Twitter share and wanted to buy the company. There was also fear that he might be selling Tesla's share to do so. The rumour became true. While Twitter share price rose to a high point, Tesla's p...
Tesla: short; Twitter: long
Step 3: Provide detailed explanations for your choices.
In January 2022, rumour was running wild that Elon Musk, CEO of Tesla, was buying in Twitter share and wanted to buy the company. There was also fear that he might be selling Tesla's share to do so. The rumour became true. While Twitter share price rose to a high point, Tesla's p...
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Short: $JPMorgan(JPM.US$ $138.96
Long: $Bank of America(BAC.US$ $28.02
Reasons for the above strategies:
This pair strategy is based on relative valuations and recent price movements of the two stocks.
The long position on BAC is motivated by its lower P/E ratio of 8.40, compared to JPM's P/E ratio of 10.22, suggesting a potential undervaluation of BAC. Additionally, BAC offers a higher dividend yield of 3.15%, which might appeal to income-focused investors. Th...
Long: $Bank of America(BAC.US$ $28.02
Reasons for the above strategies:
This pair strategy is based on relative valuations and recent price movements of the two stocks.
The long position on BAC is motivated by its lower P/E ratio of 8.40, compared to JPM's P/E ratio of 10.22, suggesting a potential undervaluation of BAC. Additionally, BAC offers a higher dividend yield of 3.15%, which might appeal to income-focused investors. Th...
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ZnWC : Congratulations to all winners
