Update: ACE Limited (ACE) vs The Chubb Corporation (CB)

From August 2 post:

The trade here is to be short $ACE (ACE Limited) and long $CB (The Chubb Corporation).  Pull this spread up on your charting package and look at the long term moves.  The spread could easily move to the $5.50 mark before reverting to the mean.  The good news is that both stocks are through their earnings dates.  If you believe in a bounce of the overall market, short less of $ACE or buy more $CB.

Well, we touched $5.50 and rolled over.  I unwound the trade today.  Sure it could go further in my favor, but it was a good shelter in the storm and I’m happy with the result.  I’ll be back in the trade should it move $3 in either direction.  No edge here.

Below is the original chart:

Below is the resolution (Note: chart below uses minute data and shows the intraday ranges better):


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