Identifying Hedge Fund Strategies

Hedge funds are known for their diverse strategies, which can vary significantly from one fund to another. These funds often employ leverage, short selling, and derivatives to achieve higher returns. As an investor considering hedge funds, it's crucial to understand their operational methodologies and the various strategies they may employ.

Which of the following hedge fund strategies primarily aims to benefit from significant pricing discrepancies in different markets or instruments, engaging in simultaneously buying and selling related securities?