divergence between NRG and OILNRG has long had a beautiful relationship wit OIL but recently that correlation has gone straight out the window. Im by no means an economics pundit and frankly am slightly unsure as to how an electric utilities company relates to oil (both energy sector? oil used as a means for producing energy? are a few ideas that could be in the right direction).
They are also both part of the energy sector despite being in completely different classes (commodity vs common stock).
That being said from a chart reading perspective, the divergence is worrying and could be sign for a strong reversal in the NRG bull run because i doubt that the price of oil is influenced by NRG, but rather the price of NRG is reliant on the price of oil.
Short position here on NRG hoping that the correlation between both returns to around 1
