Correlation strategies: trading the spread between two pairs

When two correlated pairs diverge, some traders trade the convergence — long one, short the other, with net exposure smaller than either leg. It's a different risk profile: less directional, more spread.

Do you trade pair spreads?

• which pairs you pair up and why
• how you size the two legs
• the divergence signal that triggers you

The correlation guide explains how to measure the relationship.