As the world continues to face challenges in dealing with the Coronavirus (COVID-19) pandemic, we are taking steps to provide some safety measures to our clients and staff.
Given the wide-ranging impact of the pandemic and in line with advice from government and the World Health Organisation (WHO), limiting unnecessary human contact is an invaluable precaution. We therefore strongly encourage you to use our suite of digital tools and trading platforms for your financial needs. Digital platforms provide an efficient, fast, safe and nearly instantaneous solution to many, if not all your investing requirements, away from public spaces.
KEEPING EVERYONE SAFE
The safety of our employees and clients is something that we care deeply about. While the extent of COVID-19 is still unknown, our plans have the necessary flexibility to evolve as the situation requires.
As a result, Sharenet will unfortunately not be accommodating client meetings at a branch level, for the forceable future. As soon as the situation changes, we will advise you, our valuable clients accordingly.
The widespread concern around COVID-19 creates the perfect opportunity for cybercriminals to defraud customers. To ensure protection against targeted ransomware and Malware attacks, remember to install the latest version of a Multi-layered Antivirus program and never share your account details online or via email.
Sharenet remains fully operational and should you experience any technical difficulty, rest assured that our superior support staff is ready to assist with any technical queries and can be reached on:
We thank you for your understanding.
All the best to you and your loved ones.
PAIR TRADING TOOL
Finding Trading Opportunities on the JSE
WHAT IS PAIR TRADING TOOL
Based on academic research
This tool uses a research paper written by Gatev et al (2006) - considered to be the landmark paper of pairs trading. It is typically referred to as the "distance method".
Pair trading is a market neutral strategy that seeks to profit off the relationship between two similar stocks. For example, one can expect similar companies like Absa and Nedbank to exhibit similar behaviour. PTT identifies the 20 best pairs and when they generate signals.
USER TIPS: How to use the Pair Trading Tool
Looking for pairs with a trade signal?
The "Pairs Menu" sheet provides an overview of trading instructions for the top 20 pairs as well as which ones have a "Enter Trade" instruction.
Analyse a pair in detail
The "Trade Screen" sheet provides a detailed look at the pair relationship. If a spread is significantly wide, then a trade signal is triggred.
Always use a stop loss
Since it is not a perfect world, sometimes unforeseen circumstances will prevent a relationship from reverting to normal. This means that the pair "diverges". Always employ a stop loss on the net return of the pair to cap any losses.
Risk Warning: Share trading may not be suitable for everyone and can result in losses, so please ensure that you fully understand the risks involved. All dealings are on an execution only basis. Sharenet does not give advice and any statement made by Sharenet to a client shall not constitute advice or a recommendation to trade or close a trade in any way.
You need a Sharenet Securities account to view the content.