Index Rebalancing: Why Stocks Move When They Join the S&P 500
How S&P 500 index rebalancing works, why added stocks jump, and how traders and investors can think about the index effect and its risks.
trading strategies
Pairs Trading: Market-Neutral Trades Between Related Stocks
How pairs trading works: choosing related stocks, trading the spread long and short, and the real risks that break market-neutral positions.
Trend Following vs. Mean Reversion: Two Strategies Compared
Trend following and mean reversion are opposite ways to trade the same market. This article explains how each works, when each tends to fail, and how to decide which fits your time horizon and temperament.