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Writer's pictureIlkay Boduroglu

Investigation of Stochastic Pairs Trading Strategies under Different Volatility Regimes

Updated: May 21, 2020

Authors: Sayad Baronyan, Ilkay Boduroglu, Emrah Şener


We investigate several market-neutral trading strategies and find empirical evidence that market-neutral equity trading outperforms in 2008, the first full year of the global financial meltdown. In our experiments we use 14 distinct market-neutral trading strategies, using the combination of seven trading methods and two selection methods of pairs trading.



Fig. 1 Cumulative Return Graphs of 2STD Trading Methods

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