Tag Archives: pairs trading

Platinum to Gold Ratio

On 7 February I posted a discussion on a buy platinum/sell gold pairs trade strategy. This was based on a tight supply situation in platinum with entry triggered by a set up in the ratio chart. So far so good.  The ratio between platinum and gold has … Continue reading

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Posted in Commodity, Gold, Market, Trading | Tagged , , , , , , , , | 1 Comment

Buy Platinum: Sell Gold – pairs trade update

On 21 November, I posted a blog outlining some thoughts on the possibility of platinum outperforming gold. The entry strategy discussed was triggered in late January. In recent days platinum broke above resistance and last night, jumped sharply. I thought now might be the time for a follow … Continue reading

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Posted in Gold, Market, Trading | Tagged , , , , , , | 7 Comments

Gold and Platinum

The Platinum price has recently been at its lowest level compared to Gold in over 16 years. This looks like an opportunity for pairs traders prepared to “stalk” this trade and keep an eye on the relationship between these metals.

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Posted in Gold, Market, Trading | Tagged , , , , , , , | 3 Comments

Pairs Trade – Buy NAB, Sell Westpac

As a trader, my preference is for “contrarian” strategies that look to sell high and buy low. This approach can be applied to pairs trading just as much as to outright positions. In this post I discuss a strategy based on the price difference between National … Continue reading

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Posted in Market, Shares, Stocks, Trading | Tagged , , , , , , | 3 Comments

Pairs Trade – Sell Telstra, Buy Australia 200

Telstra is the best performing stock in the Australian top 50 over the last 10 months. Its defensive characteristics, the signing of the NBN deal and a compelling dividend yield (Telstra dividend yield table http://blog.cmcmarkets.com.au/2012/02/09/telstra-dividend-yield-table/ )have driven a massive out performance. There … Continue reading

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Buy CBA, Sell WBC

The Australian banking industry is dominated by the “Big Four” banks – ANZ, Commonwealth (CBA), National Australia (NAB) and Westpac (WBC).  Broader economic factors move the sector as a whole, but company specific factors can drive outperformance and underperformance. One … Continue reading

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Posted in Market, Shares, Stocks, Trading | Tagged , , , , , | 5 Comments

Profit from Pairs

Despite a languid share market, two pairs trades highlighted on this blog illustrate the potential for profit from pairs, at lower market risk, regardless of the overall direction of the market. Today’s post looks at the performance of these trades … Continue reading

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Posted in Market, Shares, Stocks, Trading | Tagged , , , , , | 2 Comments

Energy Pair – BUY Woodside, SELL Oilsearch

The ASX lists two globally significant oil and gas producers – Woodside and Oilsearch. While their assets are in different parts of the Asia Pacific region they have a key common factor – extensive gas reserves. Over the last year, … Continue reading

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Posted in Market, Shares, Stocks, Trading | Tagged , , , , , , | 14 Comments