Paired Trades and Hedging Strategies | Stock Discussion Forums

Non-Tech: Paired Trades and Hedging Strategies

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Moderated By: Biomaven -- (Not Moderated) -- Started: 10/5/2004 2:17:17 PM Revision History

A "Paired Trade" is buying one stock or index and simultaneously shorting another. It is a bet on relative performance rather than absolute performance - you can make money even though both stocks go down, just so long as your shorted stock goes down more than the stock you are long.

Good paired trade opportunities are infrequent, but can be gems when you find them - very low risk for the reward.

This thread is meant to explore opportunities, ideas and strategies involving paired trades. General ideas and discussion on hedging are also welcome.

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Reply	Message Preview	From	Recs	Date
136	Thank you for your reply, I understand the concept more clearly now. (Sorry, fri	tyc:>	-	07/16/2009 11:17 PM
135	No, I wouldn't consider those two a paired trade. The essence of a paired tr	Biomaven	1	07/16/2009 10:53 PM
134	These two ? Same questions [graphic]	tyc:>	-	07/16/2009 06:55 PM
133	Would this "pair" qualify in principle? If so which wd you short and	tyc:>	-	07/16/2009 06:43 PM
132	Finding that it can be quite painful to invest in alternative energy without a c	Sam Citron	-	09/05/2008 03:57 PM
131	>>Use WFC Understand, but BAC has a much higher div. :-) WB could be su	IRWIN JAMES FRANKEL	-	08/21/2008 08:12 AM
130	Use WFC. Dale Baker over at 50%.... has a list of 5-6 bank pair trades that loo	Robohogs	-	08/20/2008 08:03 PM
129	Here is a paired trade: Thesis - Stress of the credit crunch on financials, FNM	IRWIN JAMES FRANKEL	-	08/20/2008 03:17 PM
128	How about a wimp out and using MRO instead? Their value has gotten stupid here.	Robohogs	-	07/10/2008 09:55 PM
127	>>You think the refiners are a buy here? Yes I do. But I have not pulled	IRWIN JAMES FRANKEL	-	07/10/2008 09:11 AM
126	There was actually a paired trade involving TSO suggested on Seeking Alpha - lon	Biomaven	-	07/09/2008 10:12 PM

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