Is there anyone who uses pair trading (divergences) often? And how do you know how much to go long on underperformer and how much short on the other?

Is there anyone who uses pair trading (divergences) often? And how do you know how much to go long on underperformer and how much short on the other? Equities like KO and PEP when they diverge from each other (example)? Also does the beta of the stock matter in making a successful pairs trade? —– …

Is there anyone who uses pair trading (divergences) often? And how do you know how much to go long on underperformer and how much short on the other? Read More ยป