An Empirical Evaluation of Pairs Trading in The Swedish Stock Market
This thesis offers a study on the performance of two different pairs trading approaches, the Distance Method and the Stochastic Spread Method implemented on the Swedish stock market for the period 2005-03-01 to 2014-03-06. The thesis also expands in the existing literature on the stochastic spread approach to pairs trading by proposing a pair selection method and an alternative way of generating t