#TradingPairs101 Trading pairs (pair trading) refers to an investment strategy that exploits historical correlations between two similar assets, with the aim of profiting from the divergence of those correlations. It is a trading technique that uses asset price data to identify investment opportunities.

How pair trading works:

1. Identify correlated asset pairs:

The strategy begins by identifying two assets that have a strong and positive historical correlation. These assets can be, for example, different types of stocks, currencies, or commodities.