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Yeah, the first thing I thought about when I heard this is that these two shares would be ideal for pairs trading! (Though presumably this will be arbitraged aw
by naftaliharris 13y ago
Yeah, the first thing I thought about when I heard this is that these two shares would be ideal for pairs trading! (Though presumably this will be arbitraged away quickly).
- repsilat 13y ago> Though presumably this will be arbitraged away quickly Only if the market believes they have the same fundamental value. Edit: well, if differences in price stabilise then you might "arb" unequal price movements away, but it's still risky. The best you can probably do is bet generally on corellated movements, not fine-grained one-to-one matching.