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Pairs Trading

Beta Weight or Dollar Weight your Pairs Trade?

By June 9, 2018June 12th, 2018No Comments

So many times, I have folks that will ask me about when they should beta weight vs dollar weight their pairs trade. In order to best explain, we will use the pairs BP-MRO and BAC-RF for our example. Before deciding whether to beta weight or not, you first want to discern the approximate range of…

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