Trading Pairs : Capturing Profits and Hedging Risk with Statistical Arbitrage Strategies by Mark Whistler (2004, Hardcover)

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About this product

Product Identifiers

PublisherWiley & Sons, Incorporated, John
ISBN-100471584282
ISBN-139780471584285
eBay Product ID (ePID)30214043

Product Key Features

Book TitleTrading Pairs : Capturing Profits and Hedging Risk with Statistical Arbitrage Strategies
Number of Pages304 Pages
LanguageEnglish
TopicFinance / General, Investments & Securities / General
Publication Year2004
IllustratorYes
GenreBusiness & Economics
AuthorMark Whistler
Book SeriesWiley Trading Ser.
FormatHardcover

Dimensions

Item Height1.1 in
Item Weight27.3 Oz
Item Length10.3 in
Item Width7.3 in

Additional Product Features

Intended AudienceTrade
LCCN2004-002263
Dewey Edition22
Series Volume Number216
Dewey Decimal332.64/5
Table Of ContentAcknowledgments. Introduction. CHAPTER 1:The Nuts and Bolts. What Are Pairs? How Do Pairs Work? Who Uses Pairs? Mindset of Reading This Book. CHAPTER 2: Why Fundamental Analysis? Common Sense. China.com. How Fundamental Analysis Relates to Pairs. CHAPTER 3: Market Basics. Growth and Growth Ratios. Growth, PE, and the PEG Ratio. Tying It All Together. CHAPTER 4: Technical Analysis. Candlestick Charting. Support and Resistance. Trend Lines. Moving Averages. CHAPTER 5: Technical Analysis Indicators. Stochastics. Chaikin Money Flow Oscillator. On-Balance Volume. Relative Strength Index. CHAPTER 6: Basic Pairs Terminology. Understanding the Correlation. Spread, Differential, and Ratio. Divergence Trading. Convergence Trading. CHAPTER 7: Importing Data into Excel. CHAPTER 8: Understanding Correlations--Steve Price. CHAPTER 9: Correlation Simplified. What Is a Correlation? Where to Find Correlations. Building a Correlation Using Excel. CHAPTER 10: Understanding Stock Correlations in Relation to Indices. Why an Index? What Is Beta? How to Apply Beta. Where to Find Beta. CHAPTER 11: Basic Statistics. Frequency Distribution. Mean/Median/Mode. Mean Deviation. Variance. Standard Deviation. CHAPTER 12: Excel and Statistics. Setting Up the Spreadsheet. Average, Median, Mode, and Standard Deviation. Understanding the Present Data. How Do You Know Which Stock to Buy or Short? Charting the Data. CHAPTER 13: Differential versus Ratio. Differential. Ratio. CHAPTER 14: Applying Statistics to Pairs. Density Curve. Understanding the Data. CHAPTER 15: Taking a Step Back for a Moment. CHAPTER 16: Moving Averages and Normalized Standard Deviation. Standard Deviation. Differential Moving Average. Normalized Standard Deviation. CHAPTER 17: Money Management. Why Money Management? Psychology of Money Management. Understanding How Pairs Can Be Dangerous. CHAPTER 18 Money Management II. Fundamental Principles. Know Yourself. The Plan. CHAPTER 19: The Reality of Pairs. Do Pairs Really Work? Trader or Investor? Making the Style Work for You. Intraday Pairs. CHAPTER 20: Trading an Actual Pair. Introduction. Trading Diary--The Beginning. Historical Time Line of Divergence Events. CHAPTER 21: The Current Setup. Understanding Where the Pair Is Now. Anadarko Petroleum. CHAPTER 22: Trading Diary. CHAPTER 23: Correlating Stocks to Indices. General Electric and ExxonMobil. General Electric and the DIAMONDS. ExxonMobil and the DIAMONDS. The Three Wise Men. CHAPTER 24: Option Basics--Scott P. Evans. CHAPTER 25: Understanding Volatility. What Is Volatility? Volatility Position Sizing in Your Spreadsheet. Volatility and the Individual Stock. Weighted Volatility. CHAPTER 26: Understanding Volatility and Options. Speed and Option Premium. Option Strategies for Pairs. CHAPTER 27: Using Technical and Fundamental Analysis with Pairs. Technical Analysis. Fundamentals. KBH Homes and Tol Brothers. Moving Averages and Support and Resistance as Stops. CHAPTER 28: Assorted Advice to Assist Trading. CHAPTER 29: The Monitor Sheet. CHAPTER 30: Conclusion. The Market Bubble. Words of Caution. Last Words of Advice. Appendix I Economic Indicator Summary. Appendix II Web sites, Books, and Software. Endnotes. Glossary--Jonathan Crowell and with Additions from Andrew and Aaron Long. Index. About the CD-ROM.
SynopsisAn accessible guide to the pairs trading technique A leading arbitrage expert gives traders real tools for using pairs trading, including customizable Excel worksheets on CD. Mark Whistler (Denver, CO) is the key developer of pairstrader. com as well as a licensed securities trader and broker and leading arbitrage expert., An accessible guide to the pairs trading technique A leading arbitrage expert gives traders real tools for using pairs trading, including customizable Excel worksheets available on the companion website. Mark Whistler (Denver, CO) is the key developer of pairstrader.com as well as a licensed securities trader and broker and leading arbitrage expert., Pairs trading is an effective trading style that has traditionally been utilized by institutional investors such as hedge funds and savvy individuals who trade for a living. But today, this style has been adopted by a broad range of traders from the novice to the veteran. With the help of technology and some commonsense guidance, you too can begin using this technique to boost the profits of your portfolio. Written by Mark Whistler, a licensed securities trader and broker and leading arbitrage expert, Trading Pairs clearly illustrates this profitable technique, and allows you to gain a new perspective on the markets as well as a new approach to investing. In addition, if you have access to the Internet and Microsoft Excel, the companion website can help you put everything in this book to practice, as well as track your pairs. "Mark Whistler has produced the ultimate guide to pairs trading that is a must read for any technical or fundamental market trader. Better yet, he s done so with a sense of humor that makes for an even better read!" Scott Cortelyou cohost, Business for Breakfast , 760 AM, The Zone, KKZN
LC Classification NumberHG4661.W46 2004
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