Some Research On Pairs Trading Based On Co-integration

One popular short-term speculation strategy is known as "pairs trading". The strategy has at least a20-year history on Wall Street and currently used by hedge funds as well as investment banks. With the launch of "Short Pur-chase&Short Sale" in March31,2010, China’s A-share market has ushered a brand new age of hedging.This paper concentrates on the applications of pairs trading in real trans-actions, including pairs trading procedures, a detailed analysis of the efficiency of the use of funds, which is integrated with the basic principles of pairs trading as well as trading rules.