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How Pair Trading Works: What Is Trading Pairs and Mean Reversion

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Explore how pair trading works and what trading pairs means through the lens of mean reversion and historical correlation. Pair trading involves selecting two closely linked stocks or assets, analyzing their price relationship, then trading the spread when it deviates from the average. This market‑neutral strategy offers a structured way to manage risk and take advantage of relative p... https://powerpairs.hashnode.dev/what-is-trading-pairs-and-how-pair-trading-works

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