Does anyone use a variation of the forex carry trade concept with stocks

E

eaglefeather

Hello,

Interested if anyone uses the forex carry trade concept with stocks.

Maybe find a correlated pair?

Short the low yield stock, buy the higher yield stock?

Gain an edge possibly?

What about doing this with US stocks and Foreign ADRs?

Bonds?
 
eaglefeather said:
Short the low yield stock, buy the higher yield stock?
More...
It's a fairly common strategy. Simplest form you can go long dividend select spiders and short the futures against it. It's something that you can make arbitrarily complex - you can go down to sectors or what not.

There is a number of interesting things to do around dividends.
 
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