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?
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.