RIMM vs. Nokia

Marketwatch recently conducted a poll: Nokia vs. Research in Motion: Who's in worse shape?

Who I am not crazy about the long-term competitive position of RIMM compared to Nokia, who I believe to be in comparatively better shape, tactically RIMM seems to be in a better technical position than NOK. Consider this chart of the relative performance of the two stocks:

RIMM is at the bottom of the trading range against NOK in the last two years. Tactically, this sets up RIMM to outperform NOK in the short term.

I would add that the caveat that putting on this pair trade is fraught with company specific risk and anyone who enters into this does so at their own risk. I would further suggest to define your risk and target levels before entering into such a speculative trade.