Tuesday, May 6, 2008

Chevron vs. Exxon pairs play

These two companies move in step almost perfectly. This chart shows their historical movements:





The last couple of couple of days, they have begun to diverge:




A strong bet might be on the convergence of these two back to similar returns. Please note that these charts are percentage changes and not price so it is a little misleading.

I don't have nearly the capital to take advantage of this but someone probably could with the correct put on Chevron and call on Exxon.


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