#TradingPairs101 a trading strategy that exploits historical correlations between two similar assets, with the aim of profiting from the divergence of these 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 starts 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.