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Glossary
Pairs trade

Pairs trade

Strategy

Long one asset and short a closely correlated asset to bet on relative value.

Related terms

Long position
Short position
Hedging
Mean reversion
Trend following
Momentum
Arbitrage
Backtest

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For informational purposes only. Not investment advice. Trading involves substantial risk of loss. Past performance does not guarantee future results.

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Pairs trade — definition, formula, example | Drogo