Saxo equity pair trades: Goodyear stuck in the mud
Continental has risen 1.5 percent this week while Goodyear has struggled to get any traction, resulting in a drop of 8 percent. This has caused to spread between the two to (more than) mean-revert to plus 0.7 from minus 1.9 initially. It is time to take a profit.
Source: Bloomberg and Saxo Bank