Trade of the Month: Telkom vs Vodacom
Telkom is one of the few stocks that has been in an uptrend over the past 12 months, while Vodacom has been in a solid downtrend over the same period
The market has been really difficult over the past few months. There have been many opposing catalysts and, frankly, poor performance from almost every sector of our economy. The question is: where are the low-risk opportunities to take trades in the current adverse conditions in the local market?
The lowest-risk trades are usually pair trades, which are two opposing trades on similar stocks in either the same or similar sectors. Usually the idea is to find two stocks that are rather tightly correlated (positive correlation) and then wait for that correlation to temporarily break down.