Convergence

When pairs move towards a single points

Author: Patrick Curtis
Patrick Curtis
Patrick Curtis
Private Equity | Investment Banking

Prior to becoming our CEO & Founder at Wall Street Oasis, Patrick spent three years as a Private Equity Associate for Tailwind Capital in New York and two years as an Investment Banking Analyst at Rothschild.

Patrick has an MBA in Entrepreneurial Management from The Wharton School and a BA in Economics from Williams College.

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Reviewed By: Hassan Saab
Hassan Saab
Hassan Saab
Investment Banking | Corporate Finance

Prior to becoming a Founder for Curiocity, Hassan worked for Houlihan Lokey as an Investment Banking Analyst focusing on sellside and buyside M&A, restructurings, financings and strategic advisory engagements across industry groups.

Hassan holds a BS from the University of Pennsylvania in Economics.

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Last Updated:April 21, 2022

Convergence is when two items move in different directions to each other but towards the same point. In finance the term convergence is applied to assets, indicators and indices.
Convergence can provide a signal to enter a position, for example if the difference in the prices of Brent Crude and WTI crude starts to decrease, a potential strategy would be to buy one and sell the other in the expectation that they will diverge again in the future.

 

 

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