Dates and Locations

01 Oct

London, UK

London Chamber of Commerce >>

Please visit our Course Diary to see dates and locations for all of our UK and European courses.

Course Outline: Pairs Trading

This intermediate level one day course examines equity pairs trading techniques and is designed for market players with some knowledge and experience in statistical arbitrage strategies. From stock selection to strategy testing and execution, the course will provide a more in-depth examination of this important trading technique.

Frequency Issues
- Medium to low frequency
- High frequency
- Differences in data and predictability

Order Book Analysis
- Market movement indicators
- Market direction indicators
- Synthesizing both

Pairs Selection
- Similarity
- Risk matching
- Sizing of positions

Test Environment
- Historic Data
- Replicated live data
- Simulated market interaction

Trade Execution
- Capturing the spread
- Passive / aggressive strategies

Impact of Market Regimes
- Normal markets
- Disrupted markets

Sample Pairs
- E.g. Allianz/Munich Re
- Vs. Nokia in various currencies