into Hedge Funds
with Pair Trade
Pair Trade is a market-neutral options trading strategy, where stocks of two companies with correlated prices are traded together to hedge risks. This option trading strategy is based on the analysis of the price relation between two stocks and facilitates low-risk profit by taking long position on the under performer and short position on the over performer.
with Pair Trade
With long and short positions on price related stocks, each position acts as a hedge against the other with low to no risk.
Market movements either benefit the long or the short position, since this strategy has both, it is not affected by the market movements.
The weightage of both long and short positions are equal, thus avoiding exposure to the market risks.
Pair with Karvy for Pair Trade
Once you pair with Karvy for pair trading, you can
Get well researched and analysed pairs for easy and profitable trade
Set preferences of days and deviations to filter the suggestion
Create customised list of favourite stocks for easy access and close watch.
Make a Pair
Flexibility to create and trade a pair of your choice of stocks
Easily check the two years’ performance history of any pair
Experience pair trading with real time data without investing a penny
Trade pairs with ease
Pair trading is no rocket science. You can trade a pair in 4 steps.
Pair: Choose stocks of two correlated companies.
BackTest: Check quantitative correlation Weight: Calculate price ratio and mean of the selected stocks
Position: Take long and short positions based on calculation
Trade: Book profits as prices move towards deviation