Stocks & Commodities V. 23:2 (120): Books For Traders by Technical Analysis, Inc.
Trading Pairs: Capturing Profits And Hedging Risk With
Statistical Arbitrage Strategies (279 pages, $89.95 hardcover, 2004, ISBN 0-471-58428-2) by Mark
Whistler, published by John Wiley & Sons.
When you buy or sell a stock, you hope it
moves in a direction that results in a profit. Sometimes that leaves you with a naked position at the mercy of the
markets. Pairs trading allows the individual investor a way to hedge positions. The goal is to protect your portfolio from drastic market upswings or downturns while finding the inequities that will make you money. This guide lays a foundation, then teaches you to use this technique profitably. Pairs trading is not the holy grail of trading, but the insights and advice in this book will help traders to track pairs and increase the bottom line in their portfolios.