UPS FDX analysis cointegration strategy
Pairs Trading Analysis System and chart
Stock Pairs: UPS vs FDX
Strategy: Cointegration
Period Week Indicator: Correlation Coefficient
Trading pairs UPS vs FDX which has moved from its correlation can be done based on pair options signals or analyzing the prices of the stock pairs and tries to profit from the mean-reversion proces. The trader should look for a divergence pairs that have moved away from each other and preferably, a pair in which the stocks have moved away from each other and then back together in a regular pattern.
Technical Analysis: UPS move together very closely and has a maximal correlation with FDX. This means it's profitable when the relative value between the two assets is perturbed from equilibrium, you can take a contrarian position and pair options signals trading as the prices revert back to their long-run mean.
Labels: cointegration analysis, UPS vs FDX
