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05
construct a market-neutral pair
Keep the long leg, short a correlated instrument, and isolate relative performance rather than direction.
what it protects
relative value between two correlated assets
instrument
long spot plus short perp of a correlated reference
conditions
- both legs have registered markets
- correlation is meaningful
collateral
margin is required on the short leg only
costs
- two sets of fees
- funding on the short leg
funding exposure
the dominant carrying cost of the structure
liquidation risk
the short leg liquidates independently of the long leg
basis risk
correlation breakdown is the main failure mode
worked calculation
connect a wallet for live values
pair notional
sleeve exposure × protection %
net direction
long notional − short notional
no live values yet — the calculation runs against real balances only.