A Sneaky "Gamification" Pair Trade That May Net Up To 50%

Here's two companies in the same industry to consider. One is overvalued and could make for a good short, while another has been overlooked and beaten down for no good reason.

The purpose of a good pair trade is to mitigate risk to the downside while maintaining some semblance of attractive potential return on the upside.

Many times, pair trades include companies in the same industry where there has been two different type of value disconnects - one to the upside and another to the downside.

In those cases, patient investors hope for reversion to the mean from both prices and then hope to capture the difference in the process.

I found this pair trade by arriving at both legs of the trade separately, then realizing that since the two names trade in unison, they could work together.

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