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Never Wrong Capital (NWC) wants to create a beta neutral pair trade of two stocks: going long Online Electronics Ltd., and shorting Brick n' Mortar
Never Wrong Capital (NWC) wants to create a "beta neutral" pair trade of two stocks: going long Online Electronics Ltd., and shorting Brick n' Mortar Goods. Online Electronics' beta to the S&P is 1.5 and Brick n' Mortar's is 1.1 If NWC goes long $1000 of Online Electronics stock, how would should the fund size the Brick n' Mortar short to be "beta neutral
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