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Question
You expect the ratio or difference in prices (also called the spread)
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Question
You expect the ratio or difference in prices (also called the spread)
Answer
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Question
You expect the ratio or difference in prices (also called the spread)
Answer
[default - edit me]
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Pairs Trading using Data-Driven Techniques: Simple Trading Strategies Part 3
derlying Principle Let’s say you have a pair of securities X and Y that have some underlying economic link, for example two companies that manufacture the same product like Pepsi and Coca Cola. <span>You expect the ratio or difference in prices (also called the spread) of these two to remain constant with time. However, from time to time, there might be a divergence in the spread between these two pairs caused by temporary supply/demand changes, large

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