What's the reasoning to justify the correlation between each instrument?
mazdaki
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@Draz, not sure what you mean by the correlation. Generally, the proposition of EV should correlate with price of oil. As price of oil goes up the EV proposition becomes more attractive. but sometimes one gets ahead of the other and the pair trade tries to negate such differences... for now tsla is overvalued and thus the pair trade is predicting a correction.