Why does $WDC get all the downside of $SNDK but none of the upside?
I’ve noticed over the past two weeks that $WDC hasn’t been moving in line with $SNDK, and I’m trying to understand why.
For example, when SanDisk is up 10% or more, WDC might only gain 1 - 2% before ending the day down 2% or worse. Yet when SanDisk drops 10%, WDC often falls 7- 8% as well.
The relationship seems incredibly asymmetric—WDC barely participates in the upside but still absorbs most of the downside. Considering these were once the same company, I would have expected their price action to remain more closely correlated.
What am I missing here
u/timstathan — 4 days ago