Coke vs Pepsi.
Lets try a a simple pairs trading strategy. Coke vs Pepsi. The assumption is that coke and pepsi must have securities that have a price relationship. So, lets check the performance of COKE vs PEP in the last 5 trading days. If COKE is performing better, buy COKE, otherwise buy PEP.
Does it work?
wow! this strategy got +253% from 2015-2021, beating just coke or just pepsi alone, and also beating the S&P 500! will this continue to perform well in the future? are there any other obvious pairs we can trade like this? its up to you to decide.
