Investing in the stock market offers opportunities for wealth accumulation through variousstrategies. This thesis explores the pairs trading strategy with dual-class stocks differingonly in voting rights, aiming to reduce portfolio risk and outperform the market bench-mark. Using data from the Swedish Large Cap index (2003-2023), the study benchmarksthe strategy’s performance against the OMXSPI index, assessing total return, CAGR andthe Sharpe ratio for three different strategies. Depending on the predefined thresholds ofthe trading strategy, the study concludes that pairs trading can surpass a buy-and-holdapproach, showing the effectiveness of a market neutral trading strategy.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:uu-531139 |
| Date | January 2024 |
| Creators | Westerberg, Carl, Zetterberg, Fabian |
| Publisher | Uppsala universitet, Nationalekonomiska institutionen, Uppsala universitet, Statistiska institutionen |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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