Agarwal, Nikesh; Madhogaria, Vikash; Narayanan, Supreena - EconWPA - 2004
In this report, we explain and analyze a trading strategy, popularly known as Pairs trading. We begin by explaining what a pair trading strategy entails. Since there are various ways of implementing the strategy, we describe the methodology selected by us in section 3. Thereafter, we look at the...