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A correlation trading strategy is an investment approach where a trader capitalizes on the relationship between the price movements of two or more financial instruments, essentially betting on how these assets will move in relation to each other, whether positively (both moving in the same direction) or negatively (moving in opposite directions), by buying one asset while simultaneously selling another that is highly correlated to it; a popular example of this strategy is pairs trading where two highly correlated stocks are compared and traded against each other to profit from price discrepancies when the correlation weakens.

SPEAKERDharmendra RajbharTrainer

PGDM in finance, having 5+ experience in Equity, commodities , forex analysis and trading.

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