Author Topic: No Co integration & No Corellation  (Read 4771 times)

Mike Murphy

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No Co integration & No Corellation
« on: October 26, 2013, 04:32:25 pm »
Can I play devil's advocate for a minute?

I don't care about Co-integration
I don't care about Correlation
All I want to do to pair a strong stock with a weak one.

This still provides me with the market neutral advantage which I require. I know it opens me up to various other risks e.g. sector but I believe that the added return possible accounts for this.

Is there anybody trying to pair stock in this momentum-based manner?

Pls be as hash as you like in response to this because I am suggesting a completely different approach to the selection of pairs for trading.

admin

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Re: No Co integration & No Corellation
« Reply #1 on: October 28, 2013, 12:56:41 pm »
Hi,

could you give any example? I am not sure I fully understand your approach...