Pairs Trading with Charles Dotson, MFE
The Quant / Financial Engineering Podcast
00:00
Payer Trading Strategy
A payer trading strategy is pretty simple. It has since if I were to explain it to someone who had no knowledge of it, I would say you look at a graph, over time, these two things seem to move pretty closely together. And then correlation, it's not a great measure. You should probably use co-integration. But then even then, if you just use co-Integration, that might not yield great results over the long term. So you need a sturdier filtration to choose proper pairs.
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