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Statistical arbitrage, Short Tesla high valuation, buy BYD

The prevailing pessimism surrounding China and Tesla's high valuation create an opportunity for a statistical arbitrage strategy. In this setup, you could short Tesla or buy puts, while hedging the risk of a potential uptick in EV sales by going long on BYD stock or purchasing call options. The goal is to achieve a 'market-neutral' trade by balancing the downside risk in Tesla with the potential upside in BYD. The following chart simulates potential returns if you shorted one Tesla share for each BYD share.

The blue arrow is were i enter my trade for testing just with one short share of tesla at 260 and 9 shares of 1211 (BYD) at 237. let see how it plays out.

Have I missed anything?

Thanks the atencion let me know if i missed something, thanks.(open for discussion)

@Marcos_Camacho4

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108, it playing perfectly will see what happeds after 10/10 event

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