Pairs trading is a strategy that profits from a divergence in performance between two related markets.
Some of the benefits of pairs trading include:
- risk reduction
- engagement during times of low volatility
- increasing trade duration
In this segment, tastytrade highlights some common pairs in the equity index space.
Tune in to find out how to identify possible pairs trades using price, volatility, and correlation. Then, get Pete's take on the most attractive pairs trades using equity indices.