August 11th, 2013, 11:39 am
Dear all, The pair trading for two stock is easy to understand. For instance, the two stocks have very high correlation(they rise and fall together), so we can do the pair trading for these two stocks. But if I have three stocks in the same sector, and they have very high correlation, how can I do the "pair trading" for these three stocks ? Or if I have n stocks in the same sector, I want to do the same thing, how? Many thanks