The idea of pair trading: Industrial Metals & Minerals.
Ladies and gentlemen, I recommend you the idea of the pair trade:
1. it is long position in the company OCIR (OCI Resources LP) and short position in the company RIO (Rio Tinto plc).
2. it is long position in the company OCIR (OCI Resources LP) and short position in the company ARLP (Alliance Resource Partners LP).
Stocks of the company OCIR are stronger than RIO and ARLP since 2014. I think that next 2 months stocks of the company OCIR will be stronger than RIO ana ARLP.
Risk-management:
I reccomend to use a conservative approach. The trade capital divide equally between 2 pairs: OCIR-RIO and OCIR-ARLP.
The proportions of each company in pairs:
1. Stocks of the company RIO are more volatility than OCIR:
* 53% it is long OCIR.
* 47% it is short RIO.
2. Stocks of the company OCIR are more volatility than ARLP:
* 37% it is long OCIR.
* 63% it is short ARLP.
This allocation between stocks is necessary for the parity volatilities.
1. it is long position in the company OCIR (OCI Resources LP) and short position in the company RIO (Rio Tinto plc).
2. it is long position in the company OCIR (OCI Resources LP) and short position in the company ARLP (Alliance Resource Partners LP).
Stocks of the company OCIR are stronger than RIO and ARLP since 2014. I think that next 2 months stocks of the company OCIR will be stronger than RIO ana ARLP.
Risk-management:
I reccomend to use a conservative approach. The trade capital divide equally between 2 pairs: OCIR-RIO and OCIR-ARLP.
The proportions of each company in pairs:
1. Stocks of the company RIO are more volatility than OCIR:
* 53% it is long OCIR.
* 47% it is short RIO.
2. Stocks of the company OCIR are more volatility than ARLP:
* 37% it is long OCIR.
* 63% it is short ARLP.
This allocation between stocks is necessary for the parity volatilities.
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.