EMQQ/BOTZ divergence by month-end: a 60% probability
Been watching the AI plays pretty closely, and it's interesting to see $EMQQ and $BOTZ, our two bellwether AI/automation ETFs, tracking somewhat in sync lately. $EMQQ closed at 33.29 and $BOTZ at 36.91 yesterday. My gut, backed by some digging into the underlying holdings' upcoming earnings and a few whispers about new product announcements from some of the bigger players in the robotics space, suggests we're due for a bit of a divergence.
I'm giving it about a 60% probability that by month-end, the relative performance between EMQQ and BOTZ will widen, with one outperforming the other by at least 150 basis points. The recent tight correlation feels stretched, especially with distinct catalysts looming for some of the robotics pure-plays in BOTZ. Could be a decent opportunity to play the spread, or at least watch for the stronger horse.
That's an interesting call. What makes you lean towards a 60% probability for divergence? Are there specific earnings reports or product announcements that you think will be bigger movers for one over the other?