Pair Strategy Buy HLL Short ITC
PAIR STRATEGY What Pair Strategy is all about? Pair Strategy is taking a long short position within a sector on a market neutral basis based on the price ratio movement of the stocks. This strategy takes on advantage when there is dispersion in the current ratio of the two correlated stocks. The positions are squared off when the relative prices return to their averages mean. The Strategy is purely based on quantitative analysis. 1. Long HLL and Short ITC (CMP & M Cap taken on Apr02, 09): HLL (LONG) ITC (SHORT) NSE Code HINDUNILVR ITC Spot Rs 231 Rs 185.3 Future Price Rs 232.75 Rs 186.85 M-Cap Rs cr 50355 Rs cr 69940 3Months High Rs 271.9 ...