A pairs trade is a trading strategy that involves matching a long position with a short position in two stocks with a high correlation.


Students can research on pair trading algorithms and apply them to Vietnam stock market.


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  3. Vidyamurthy, Ganapathy. Pairs Trading: quantitative methods and analysis. Vol. 217. John Wiley & Sons, 2004.
  4. Nazário, Rodolfo Toríbio Farias, et al. “A literature review of technical analysis on stock markets.” The Quarterly Review of Economics and Finance 66 (2017): 115-126.
  5. Fang, Fan, et al. “Cryptocurrency trading: a comprehensive survey.” Financial Innovation 8.1 (2022): 1-59.
  6. Rad, Hossein, Rand Kwong Yew Low, and Robert Faff. “The profitability of pairs trading strategies: distance, cointegration and copula methods.” Quantitative Finance 16.10 (2016): 1541-1558.
  7. Flori, Andrea, and Daniele Regoli. “Revealing pairs-trading opportunities with long short-term memory networks.” European Journal of Operational Research 295.2 (2021): 772-791.
  8. Li, Yongli, et al. “Detecting the lead–lag effect in stock markets: definition, patterns, and investment strategies.” Financial Innovation 8.1 (2022): 51.
  9. Du, Juan. “Mean–variance portfolio optimization with deep learning based-forecasts for cointegrated stocks.” Expert Systems with Applications 201 (2022): 117005.
  10. Chen, Wei, Haoyu Zhang, and Lifen Jia. “A novel two-stage method for well-diversified portfolio construction based on stock return prediction using machine learning.” The North American Journal of Economics and Finance 63 (2022): 101818.