The idea of pair trading: Oil & Gas Equipment & Services ind.
Ladies and gentlemen, I recommend you the idea of the pair trade:
it is long position in the company CLB (Core Laboratories NV) and short position in the company GLF (Gulfmark Offshore, Inc.).
Stocks of the company CLB are stronger than GLF since 2004. Now we have a good impuls/momentum in this papers (CLB vs GLF). I think that next 2 months stocks of the company CLB will be stronger than GLF.
Risk-management:
I reccomend to use a conservative approach: 1/3 of allocated capital use in trade and 2/3 in cash.
The proportions of each company in pair:
Stocks of the company GLF are more volatility than CLB:
* 65% it is long CLB.
* 35% it is short GLF.
This allocation between stocks is necessary for the parity volatilities.
it is long position in the company CLB (Core Laboratories NV) and short position in the company GLF (Gulfmark Offshore, Inc.).
Stocks of the company CLB are stronger than GLF since 2004. Now we have a good impuls/momentum in this papers (CLB vs GLF). I think that next 2 months stocks of the company CLB will be stronger than GLF.
Risk-management:
I reccomend to use a conservative approach: 1/3 of allocated capital use in trade and 2/3 in cash.
The proportions of each company in pair:
Stocks of the company GLF are more volatility than CLB:
* 65% it is long CLB.
* 35% it is short GLF.
This allocation between stocks is necessary for the parity volatilities.