Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Bottom-Up

<ul>
<li>
Context: This Insight follows up on previously highlighted relative value opportunities, using a statistical methodology based on mean-reversion to identify opportunities in paired securities.</li>
<li>
Highlights: Currently ten pair trade opportunities across four markets and four sectors persist.</li>
<li>
Why read: Statistical analysis offers a unique perspective on relative value. Gain insights into actionable statistical pair trade opportunities and monitor performance of previously highlighted pairs.</li>
</ul>



Context: This Insight follows up on previously highlighted relative value opportunities, using a statistical methodology based on mean-reversion to identify opportunities in paired securities.

Highlights: Currently ten pair trade opportunities across four markets and four sectors persist.

Why read: Statistical analysis offers a unique perspective on relative value. Gain insights into actionable statistical pair trade opportunities and monitor performance of previously highlighted pairs.


Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (17 Nov)

<ul>
<li>
Context: The <a href="https://www.smartkarma.com/entities/honda-motor-co-ltd" target="_blank" data-smartkarma-citation="entities:154:1" rel="noopener">Honda (7267 JP)</a> vs. <a href="https://www.smartkarma.com/entities/fuji-heavy-industries-ltd" target="_blank" data-smartkarma-citation="entities:5439:1" rel="noopener">Subaru (7270 JP)</a> price-ratio has deviated two standard deviations from its one-year average, presenting a potential relative value opportunity.</li>
<li>
Highlights: Going long Honda (7267 JP) and short Subaru (7270 JP) targets a 5% return.</li>
<li>
Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.</li>
</ul>



Context: The Honda (7267 JP) vs. Subaru (7270 JP) price-ratio has deviated two standard deviations from its one-year average, presenting a potential relative value opportunity.

Highlights: Going long Honda (7267 JP) and short Subaru (7270 JP) targets a 5% return.

Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.


Long Honda (7267 JP) Vs. Short Subaru (7270 JP): Japan Auto Stat Arb Opportunity Targeting 5%

Smartkarma AI, Smartkarma

αSK

Smartkarma AI

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

<ul>
 <li>Honda is aggressively pursuing a comprehensive electrification strategy, committing to 100% EV and FCEV sales by 2040 and investing ¥10 trillion over the next decade to build a vertically integrated EV value chain.</li>
 <li>The company maintains a dominant position in the global motorcycle market, which provides substantial and stable cash flow to fund investments in future technologies like electrification and software-defined vehicles.</li>
 <li>Trading at a significant discount to its tangible book value and peers, Honda's stock appears undervalued, offering a compelling value proposition if it successfully executes its EV transition.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  Honda is aggressively pursuing a comprehensive electrification strategy, committing to 100% EV and FCEV sales by 2040 and investing ¥10 trillion over the next decade to build a vertically integrated EV value chain.
  The company maintains a dominant position in the global motorcycle market, which provides substantial and stable cash flow to fund investments in future technologies like electrification and software-defined vehicles.
  Trading at a significant discount to its tangible book value and peers, Honda's stock appears undervalued, offering a compelling value proposition if it successfully executes its EV transition.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Honda Motor Co Ltd (Adr) / Equity Bottom-Up

<ul><li>Honda Motor Company Limited's recent financial results for the first fiscal quarter of 2025 and forecasts for the entire year reveal various factors influencing the company's performance.</li><li>The operating profit for Q1 was JPY 244.1 billion, a significant decline compared to the same period last year, impacted by several nonrecurring expenses related to electric vehicles (EVs) and tariffs.</li><li>Despite challenges, notably in the automobile segment with operating losses, the company revised its full-year forecast upward, anticipating an operating profit of JPY 700 billion — a JPY 200 billion increase from previous projections.</li></ul>

Honda Motor Company Limited's recent financial results for the first fiscal quarter of 2025 and forecasts for the entire year reveal various factors influencing the company's performance.The operating profit for Q1 was JPY 244.1 billion, a significant decline compared to the same period last year, impacted by several nonrecurring expenses related to electric vehicles (EVs) and tariffs.Despite challenges, notably in the automobile segment with operating losses, the company revised its full-year forecast upward, anticipating an operating profit of JPY 700 billion — a JPY 200 billion increase from previous projections.

Honda Motor Fights Back in China With EVs & Competitive Pricing Power; Too Little Too Late?

<ul><li>Honda Motor Co., Ltd. (Honda) recently conducted a financial review of its performance for the fiscal year ending March 2025, along with projections for 2026.</li><li>Several key factors from its operations and outlook are noteworthy for investors, highlighting both strengths and challenges.</li><li>Honda's motorcycle segment saw robust performance, reporting record highs in unit sales, operating profit, and margins.</li></ul>

Honda Motor Co., Ltd. (Honda) recently conducted a financial review of its performance for the fiscal year ending March 2025, along with projections for 2026.Several key factors from its operations and outlook are noteworthy for investors, highlighting both strengths and challenges.Honda's motorcycle segment saw robust performance, reporting record highs in unit sales, operating profit, and margins.

Honda Motor Co. Ltd. Doubles Down on EV Innovation with ¥126 Billion R&D Surge; Is It Too Late In The EV Game?

Japan

Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, and power products such as generators and farm machinery. The Company also operates a financial credit business. Honda Motor has manufacturing facilities in the US, Canada, the UK, France, Italy, Spain, Brazil, Mexico, India, and Thailand.

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Honda Motor (7267 JP)

Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (17 Nov)

Statistical methodology identifies ten pair trade opportunities across four markets and four sectors, offering unique insights into relative value.

Gaudenz Schneider

Long Honda (7267 JP) Vs. Short Subaru (7270 JP): Japan Auto Stat Arb Opportunity Targeting 5%

Potential pair trade opportunity in going long Honda (7267 JP) and short Subaru (7270 JP) for a 5% target return, appealing to quantitative traders...

Gaudenz Schneider

Primer: Honda Motor (7267 JP) - Sep 2025

Honda is aggressively pursuing a comprehensive electrification strategy, committing to 100% EV and FCEV sales by 2040 and investing ¥10 trillion...

αSK

Honda Motor Fights Back in China With EVs & Competitive Pricing Power; Too Little Too Late?

Honda Motor Company Limited's recent financial results for the first fiscal quarter of 2025 and forecasts for the entire year reveal various...

Baptista Research

Honda Motor Co. Ltd. Doubles Down on EV Innovation with ¥126 Billion R&D Surge; Is It Too Late In The EV Game?

Honda Motor Co., Ltd. (Honda) recently conducted a financial review of its performance for the fiscal year ending March 2025, along with...

Baptista Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (17 Nov)

​Statistical methodology identifies ten pair trade opportunities across four markets and four sectors, offering unique insights into relative value.

Gaudenz Schneider

Long Honda (7267 JP) Vs. Short Subaru (7270 JP): Japan Auto Stat Arb Opportunity Targeting 5%

Potential pair trade opportunity in going long Honda (7267 JP) and short Subaru (7270 JP) for a 5% target return, appealing to quantitative traders...

Gaudenz Schneider

Primer: Honda Motor (7267 JP) - Sep 2025

Honda is aggressively pursuing a comprehensive electrification strategy, committing to 100% EV and FCEV sales by 2040 and investing ¥10 trillion...

αSK

Honda Motor Fights Back in China With EVs & Competitive Pricing Power; Too Little Too Late?

Honda Motor Company Limited's recent financial results for the first fiscal quarter of 2025 and forecasts for the entire year reveal various...

Baptista Research

Honda Motor Co. Ltd. Doubles Down on EV Innovation with ¥126 Billion R&D Surge; Is It Too Late In The EV Game?

Honda Motor Co., Ltd. (Honda) recently conducted a financial review of its performance for the fiscal year ending March 2025, along with...

Baptista Research

Statistical methodology identifies ten pair trade opportunities across four markets and four sectors, offering unique insights into relative value.