New york session pairs

You're referring to the New York Stock Exchange (NYSE) pairs trading strategy!

In pairs trading, you identify two highly correlated stocks (or ETFs) and trade on the basis of their relative price movements. The idea is to profit from the mean reversion of the spread between the two stocks, which tends to converge over time.

Here are some popular pairs trading ideas in the New York Stock Exchange (NYSE):

  1. Apple (AAPL) vs. Microsoft (MSFT): Both tech giants are highly correlated, making them a popular pair.
  2. Johnson & Johnson (JNJ) vs. Pfizer (PFE): These two pharmaceutical companies have similar market capitalization and are often used as a proxy for the healthcare sector.
  3. Procter & Gamble (PG) vs. Coca-Cola (KO): These consumer goods companies are both large-cap, dividend-paying stocks with relatively low volatility.
  4. Visa (V) vs. Mastercard (MA): As two of the largest payment processors, their stock prices tend to move in tandem.
  5. 3M (MMM) vs. DuPont (DD): These industrial conglomerates have similar business profiles and are often used as a proxy for the industrials sector.
  6. Caterpillar (CAT) vs. Deere & Company (DE): These two heavy machinery companies are highly correlated and often used as a proxy for the industrials sector.
  7. UnitedHealth Group (UNH) vs. CVS Health (CVS): These two healthcare companies are both large-cap, dividend-paying stocks with relatively low volatility.
  8. Intel (INTC) vs. Advanced Micro Devices (AMD): As two of the largest semiconductor companies, their stock prices tend to move in tandem.
  9. McDonald's (MCD) vs. Yum! Brands (YUM): These two fast-food chains are highly correlated and often used as a proxy for the consumer discretionary sector.
  10. Verizon (VZ) vs. AT&T (T): These two telecommunications companies are both large-cap, dividend-paying stocks with relatively low volatility.

Remember, pairs trading involves identifying the spread between the two stocks and trading on the basis of mean reversion. It's essential to:

  1. Conduct thorough research on the pair's historical correlation and volatility.
  2. Set clear entry and exit points based on the spread.
  3. Monitor and adjust the trade as needed to ensure it remains profitable.

Please keep in mind that pairs trading is a complex strategy that requires a solid understanding of technical analysis, risk management, and market dynamics. It's essential to backtest and refine your strategy before implementing it in a live trading environment.