The idea of pair trading: Oil & Gas Pipelines industry.

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Ladies and gentlemen, I recommend you the idea of the pair trade:
it is long position in the companies TEP, ETE and short position in the companies SEP, DPM, SE.

Risk-management
The proportions of each company in each pairs:
1. 42% it is long TEP and 58% it is short SEP.
2. 57% it is long TEP and 43% it is short DPM.
3. 49% it is long TEP and 51% it is short SE.
4. 42% it is long ETE and 58% it is short SEP.
5. 57% it is long ETE and 43% it is short DPM.
6. 49% it is long ETE and 51% it is short SE.

This allocation between stocks is necessary for the parity volatilities.

Penafian

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