Over the short term, and on a technical basis, Anglo American Platinum ( 
AMS) appears to be trading near a 'oversold' range vs Impala Platinum ( 
IMP ). On this basis, from a market neutral perspective, I consider a long (buy) position in AMS vs a short (sell) position in IMP.
The two shares have a high historical correlation however the recent trend (AMS underperforming IMP) has seen this correlation develop a discrepancy, opening up an opportunity to potentially profit as prices revert to it's mean.
A successful pair trade can be realized 1 of 3 ways:
The long position rises while the short position falls
The long position rises faster than the short position rises
The short position falls faster than the long position falls.
Pre-market view of entry levels (subject to change based on subsequent intraday price action).
Last close of ratio price: 7.16
Preferred entry range: 7.05 - 7.18
Stop-loss: 6.92
Target: 7.75
For more research, including trade ideas, get in touch today.
AMS) appears to be trading near a 'oversold' range vs Impala Platinum ( IMP ). On this basis, from a market neutral perspective, I consider a long (buy) position in AMS vs a short (sell) position in IMP.The two shares have a high historical correlation however the recent trend (
AMS underperforming IMP) has seen this correlation develop a discrepancy, opening up an opportunity to potentially profit as prices revert to it's mean.A successful pair trade can be realized 1 of 3 ways:
The long position rises while the short position falls
The long position rises faster than the short position rises
The short position falls faster than the long position falls.
Pre-market view of entry levels (subject to change based on subsequent intraday price action).
Last close of ratio price: 7.16
Preferred entry range: 7.05 - 7.18
Stop-loss: 6.92
Target: 7.75
For more research, including trade ideas, get in touch today.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.