TERMIUM Plus®

The Government of Canada’s terminology and linguistic data bank.

PAIRS TRADING [1 record]

Record 1 2010-05-14

English

Subject field(s)
  • Investment
  • Stock Exchange
DEF

A strategy that consists of buying one stock in a given industry, and selling short another stock, usually in the same industry.

CONT

The strategy seeks to identify two companies with common characteristics (e.g. Coke and Pepsi) whose prices are trading out of line with each other–trading outside of their historical trading range. The undervalued stock is bought while the overvalued stock is sold short. Pairs trading is often described as a market neutral strategy.

French

Domaine(s)
  • Investissements et placements
  • Bourse
CONT

Les stratégies que nous employons normalement et qui concernent les fonds de couverture comprennent généralement l'arbitrage, c'est-à-dire le fait de vendre une entreprise faible dans une certaine industrie et d'acheter une entreprise forte dans la même industrie. C'est ce qu'on appelle les transactions par paires.

Spanish

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