🔄 1. Pair Trading (Market Neutral Strategy)
Ever wanted to profit regardless of whether the market goes up or down? 📊 Pair trading involves going long on one stock and short on a related stock (usually in the same sector). Example: Long Tata Motors, short Mahindra – if you expect Tata to outperform. ✔️ Reduces market-wide risk ✔️ Focuses on relative performance ✔️ Often used by hedge funds to exploit mispricings 📌 You’re betting on the spread between two correlated assets, not the direction of the overall market.
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