ORATS ETF Component Report News: We have been seeing low implied volatility correlation in the XLB Materials components over the past days and today it is becoming clear why. A massive merger between DuPont and Dow Chemical is reported in advanced stages. Both are up > 10% today driving the beleaguered XLB up 3%.
We also see XLB 5 day historical volatility above the 252 day and implied volatility, usually a negative sign. With the remarkable merger, at the least it looks like XLB has volatility in its future.