Market Neutral: Long 
SBK, Short 
ABG
Over the long term (3 and 4 quarters), the correlation betweenSBK and ABG is high, with readings of 0.92 and 0.93 respectively. Over the short term (21 trading days or 1 month's worth of trading), the correction has developed a discrepancy, with the ratio dropping to 0.55 (ABG outperforming SBK by 7.94% over 1 month). On this basis, a market neutral/pairs trading opportunity emerged has where the relative ratio is expected to revert to the short term mean, either fully or in part.
Trading Levels:
Entry: 0.9239
Stop-loss: 0.9025
Target: 0.9700
For more research, including trade ideas, get in touch today.
SBK, Short ABGOver the long term (3 and 4 quarters), the correlation between
SBK and ABG is high, with readings of 0.92 and 0.93 respectively. Over the short term (21 trading days or 1 month's worth of trading), the correction has developed a discrepancy, with the ratio dropping to 0.55 (ABG outperforming SBK by 7.94% over 1 month). On this basis, a market neutral/pairs trading opportunity emerged has where the relative ratio is expected to revert to the short term mean, either fully or in part.Trading Levels:
Entry: 0.9239
Stop-loss: 0.9025
Target: 0.9700
For more research, including trade ideas, get in touch today.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.