Follow up on last week’s trade idea on cointegration trading

Last week we suggested to leverage on our quant models to play out the cointegration existing between Apple and Amazon by shorting roughly 2 Amazon stocks for each Apple stock bought.

The idea, which benefited from  both a fundamental and quantitative edge has returned a profit of roughly 5.5%, assuming a margin of 20% on the short trade.

Given the size of the quick profit, we recommend to close the position.