Representative Bias and Pairs Trade: Evidence From S&P 500 and Russell 2000 Indexes
This study tests whether pairs trade conditional on representative bias in the options and stock markets leads to abnormal returns. While previous literature on representativeness focuses on a single index, S&P 500 and Russell 2000 indexes are used to examine the extent to which representative b...
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| Format: | Article |
| Language: | English |
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SAGE Publishing
2022-08-01
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| Series: | SAGE Open |
| Online Access: | https://doi.org/10.1177/21582440221120361 |