CL vs. XOP

Discussion in 'Trading' started by ET180, Apr 21, 2017.

  1. ET180

    ET180

    Crude oil dropped significantly today, but XOP finished green. Can someone explain why? Is it due to option expiration? Usually the two have a positive correlation.
     
  2. Robert Morse

    Robert Morse Sponsor

    Correlation can't always be judged daily.
     
  3. ET180

    ET180

    I agree, but there's logic behind the correlation. XOP is the oil producer ETF. If the producers get paid more for their product, one can expect higher profits in the future as well as the opposite.
     
    clorox likes this.