{"id":2091483,"date":"2018-11-06T11:58:56","date_gmt":"2018-11-06T06:28:56","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=2091483"},"modified":"2018-11-06T12:12:20","modified_gmt":"2018-11-06T06:42:20","slug":"pair-trading","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2018\/11\/06\/pair-trading\/","title":{"rendered":"Pair Trading"},"content":{"rendered":"<h3>Linear regression<\/h3>\n<p>Examining linearity between two stocks \u2013 linear regression and interpreting results.<br \/>\nRead:\u00a0<a href=\"http:\/\/stockviz.biz\/index.php\/2014\/04\/24\/relationship-pair-stocks\/\" target=\"_blank\" rel=\"noopener\">Relationship between a pair of stocks<\/a><\/p>\n<h3>Co-integration<\/h3>\n<p>How do you conclude that a pair of stocks move together?<br \/>\nRead:\u00a0<a href=\"http:\/\/stockviz.biz\/index.php\/2014\/04\/28\/bank-nifty-vs-hdfc-bank-icici-bank\/\" target=\"_blank\" rel=\"noopener\">Bank Nifty vs. HDFC Bank and ICICI Bank<\/a><\/p>\n<h3>Finding Pairs<\/h3>\n<p>Correlation, spreads and co-integration.<br \/>\nRead:\u00a0<a href=\"http:\/\/stockviz.biz\/index.php\/2014\/04\/29\/finding-pairs-trade\/\" target=\"_blank\" rel=\"noopener\">Finding Pairs to Trade<\/a><\/p>\n<h3>Hedge ratio<\/h3>\n<p>Hedge ratios, spreads and significance.<br \/>\nRead:\u00a0<a href=\"http:\/\/stockviz.biz\/index.php\/2014\/04\/30\/bank-nifty-icici-bank-pair\/\" target=\"_blank\" rel=\"noopener\">The Bank Nifty \u2013 ICICI Bank Pair<\/a><\/p>\n<h3>A pair trading strategy<\/h3>\n<p>A simple trading strategy: buy the spread if it is one standard deviation below the average and sell the spread if its is one standard deviation above the average.<br \/>\nRead:\u00a0<a href=\"http:\/\/stockviz.biz\/index.php\/2014\/05\/01\/backtesting-pair-trading-strategy\/\" target=\"_blank\" rel=\"noopener\">Backtesting a Pair Trading Strategy<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Linear regression Examining linearity between two stocks \u2013 linear regression and interpreting results. Read:\u00a0Relationship between a pair of stocks Co-integration How do you conclude that a pair of stocks move together? Read:\u00a0Bank Nifty vs. HDFC Bank and ICICI Bank Finding Pairs Correlation, spreads and co-integration. Read:\u00a0Finding Pairs to Trade Hedge ratio Hedge ratios, spreads and &hellip; <\/p>\n","protected":false},"author":2,"featured_media":2091073,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3933],"tags":[3371],"class_list":["post-2091483","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-collections","tag-pair-trading","entry"],"_links":{"self":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/2091483","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/comments?post=2091483"}],"version-history":[{"count":0,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/2091483\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media\/2091073"}],"wp:attachment":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media?parent=2091483"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/categories?post=2091483"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/tags?post=2091483"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}