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Company A and Company B are both banks offering similar services and their stocks are historically very positively correlated. Company A recently started trading notably

Company A and Company B are both banks offering similar services and their stocks are historically very positively correlated. Company A recently started trading notably higher than Company B. If a trader wants to initiate a pairs trade, what should they do?

(a) Short Company A, long Company B

(b) Wait until the stocks converge

(c) Purchase both companies

(d) Long Company A, short Company B

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