Pairs Trading

The first in-depth analysis of pairs trading

Pairs trading is a market-neutral strategy in its most simple form.
The strategy involves being long (or bullish) one asset and short
(or bearish) another. If properly performed, the investor will gain
if the market rises or falls. Pairs Trading reveals the secrets of
this rigorous quantitative analysis program to provide individuals
and investment houses with the tools they need to successfully
implement and profit from this proven trading methodology. Pairs
Trading contains specific and tested formulas for identifying and
investing in pairs, and answers important questions such as what
ratio should be used to construct the pairs properly.

Ganapathy Vidyamurthy (Stamford, CT) is currently a quantitative
software analyst and developer at a major New York City hedge fund.