Design of Pairs Trading Strategies for Brown and Green Assets with Risk Diversification

نویسندگان

چکیده

Pairs trading attempts to use the idea of relative pricing, that is, if two securities have similar characteristics, then prices both must be more or less same. With promotion carbon neutrality, green transformation brown assets has become a hot topic. Through series steps including selection, co-integration coefficients calculation, mean-reverting examination, threshold parameters determination, lines design and test set back-testing, complete pairs is done by using stocks. Besides, portfolio strategy containing 50 with strongest relationship carried out for diversifying fundamental differential risk, result back-testing profitable.

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ژورنال

عنوان ژورنال: Financial engineering and risk management

سال: 2023

ISSN: ['2523-2576']

DOI: https://doi.org/10.23977/ferm.2023.060703