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Where Do I Start?: Young Money

Correlation & Pairs Trading

Where Do I Start?: Young Money

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Today Mike teaches Lindsay about pairs trades and correlation. To first understand how to put on a pairs trade, one must first understand if the two underlyings have a negative, positive, or zero correlation. This can be used to help assume a directional move.

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