Explore the strategies of relative value funds, including pairs trading, to exploit mispricings and outperform benchmarks.

Relative valuation—using simple metrics to compare a firm’s value to its peers—is a cornerstone of financial decision-making. If a company earns $2 billion in profit, and if similar firms trade at 15 ...

Imagine you’re looking to buy a new home. You probably wouldn’t start by calculating the present value of every future hour of comfort the house might provide. Instead, you would look at what the ...

James Chen, CMT is an expert trader, investment adviser, and global market strategist. Amy is an ACA and the CEO and founder of OnPoint Learning, a financial training company delivering training to ...