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Pairs relationship between WMT and GS 3/5/17

Trade is to short GS and go long WMT using options to reduce basis and also gain a directional advantage for BOTH symbols. (Gain more $$ if goes your way) 3/5/17

Technical analysis of pairs trades would be cool.. 3/5/17

It's always nice when you make more when the trade goes your way. :-))) 3/5/17

Technical analysis of pair trades works very well. On Prophet charts, you can do ratios... 
Buy Walmart vs. Goldman is somewhat like two independent trades. 
Maybe stick to intra-industry pairs with tight correlations of .80 or higher. 
You can get those correlations here:  
http://www.buyupside. com/calculators/stockcorrelationresultsinclude. php?symbol1=hal&symbol2=slb&interval=d&start_month=02&start_day=06&start_year=2016&end_month=02&end_day=06&end_year=2017&submit=Calculate+Coefficient 
 
For example, look at the ratio between Haliburton vs. Schlumberger (=HAL/SLB). 
The ratio spread is currently at .667. 
It looks like its going back to .45, which is a potential 48% return. 
What's interesting about this combination is that they are correlated at 90.8%, which is quite high. 
Bear in mind the differential between the two dividends (1.34% vs. 2.45%, so the trade is going to cost you 1.11% per year plus margin costs for the short.) 3/6/17