Pair Trading

This module starts off by explaining the basics of pair trading. Learn about pair trading jargon and get introduced to the three basic statistical tools - mean, median and mode. They form the fundamentals of one of the pair trading methods, which is based on the stock correlation. Discover how standard deviation and distribution works, and look into the density curve. Then, you get to understand how these concepts come together to help you identify trigger points for a pair trade. The module also delves into the relative value trading method, where you run the linear regression function and use the residuals to identify trigger points.