Grand Junction, CO (1888PressRelease)
May 18, 2008 - Ever since pairs trading strategies were developed, over twenty years ago, pair’s traders have been taking their favorite random symbol pairs, and trying their luck with them. Over time, a few pairs were doing well, but soon became saturated with too many traders, and the efficiency of those known pairs went on the decline. Pairs trading can be a very profitable strategy, if you know what you’re doing and have the right pairs that are mathematically correlated high enough to each other. The problem has always been finding the right set of pairs that have a high enough correlation that they will provide a real opportunity, and a set of pairs that aren’t over saturated in the market with other pair traders attempting to profit off of the same pairs. So why have correlated pairs been so elusive? Well let’s put this into perspective. There are roughly 7000 common symbols on the market today, and to test each symbol against the other produces more than 24 million combinations that need to be tested for correlations. This is far beyond the capabilities of spreadsheets, and well above the average trader.
Pairs List may provide these pair’s traders with the Holy Grail that they’ve been looking for. They provide the only online resource of highly correlated pairs, organized by the number of days in the correlation, grouped by various stock market indices, and sorted by correlation value. They update the data every night after trading has settled, so that traders get the freshest, most accurate pairs, every day. For the active pair’s trader that doesn’t have the time or skill set to play with a spreadsheet, Pairs List just might be the Holy Grail they’ve been looking for.
