Correlation and Cointegration: In pairs trading, both correlation and cointegration are important concepts, but they serve different purposes and convey different types of relationships between two financial instruments. Here’s a
Which values make FOREX pairs suitable for pairs trading?
Classic Pairs Trading: In the context of Forex pairs trading, the following criteria are generally considered to determine suitability: High Correlation: Desired Range: Approaching +1 or -1 Justification: A pronounced