Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Derivatives

<ul>
<li>Since 2x leveraged ETFs linked to <a href="https://www.smartkarma.com/entities/sk-hynix-inc" target="_blank" data-smartkarma-citation="entities:16955:1" rel="noopener">SK hynix (000660 KS)</a> launched in late May, volatility in the underlying stock has increased significantly.</li>
<li>Although daily rebalancing can amplify price moves, the data do not indicate that it does so systematically.</li>
<li>Overnight and intraday returns are largely uncorrelated across the sample, although they tend to reinforce each other on days with extreme moves.</li>
</ul>


Since 2x leveraged ETFs linked to SK hynix (000660 KS) launched in late May, volatility in the underlying stock has increased significantly.
Although daily rebalancing can amplify price moves, the data do not indicate that it does so systematically.
Overnight and intraday returns are largely uncorrelated across the sample, although they tend to reinforce each other on days with extreme moves.


SK Hynix (000660 KS): 130% Volatility and 2x Leveraged ETF Rebalancing

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>In 2018, SK Hynix invested 2.7 trillion won in Bain Capital consortium that invested in Kioxia and an additional 1.3 trillion won in Kioxia convertible bonds, totaling 3.7 trillion won.</li>
<li>SK Hynix has hit a huge homerun with its investment in Kioxia Holdings. SK Hynix's investment in Kioxia has surged by more than 32x its original investment in eight years. </li>
<li>SK Hynix's stake in Kioxia is now worth nearly US$79 billion (121 trillion won), representing 5.8% of SK Hynix's current market cap (2,080 trillion won). </li>
</ul>


In 2018, SK Hynix invested 2.7 trillion won in Bain Capital consortium that invested in Kioxia and an additional 1.3 trillion won in Kioxia convertible bonds, totaling 3.7 trillion won.
SK Hynix has hit a huge homerun with its investment in Kioxia Holdings. SK Hynix's investment in Kioxia has surged by more than 32x its original investment in eight years. 
SK Hynix's stake in Kioxia is now worth nearly US$79 billion (121 trillion won), representing 5.8% of SK Hynix's current market cap (2,080 trillion won). 


SK Hynix - A Homerun Investment in Kioxia

Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>Street sees end-August print with Solidigm tie in; total around 70 trillion won, mix buyback plus special dividend, staged from 4Q with multi year buyback and FCF linked quarterly payouts.</li>
<li>Near term narrative weak; immediate shareholder return signal unlikely. Faster Solidigm timeline could signal urgency on peak out risk and reinforce concerns rather than remove them.</li>
<li>Tactical setup; if stock catches a bid, play the pop, monetize relief, and rotate out rather than chase strength.</li>
</ul>


Street sees end-August print with Solidigm tie in; total around 70 trillion won, mix buyback plus special dividend, staged from 4Q with multi year buyback and FCF linked quarterly payouts.
Near term narrative weak; immediate shareholder return signal unlikely. Faster Solidigm timeline could signal urgency on peak out risk and reinforce concerns rather than remove them.
Tactical setup; if stock catches a bid, play the pop, monetize relief, and rotate out rather than chase strength.


Latest Read on Hynix Shareholder Return and Solidigm Since Last Friday’s Filings

Pan-Asia Tactical Market Calls (Quant-Driven), MRM Research

Nico Rosti

Pan-Asia Tactical Market Calls (Quant-Driven)

MRM Research

Quantitative Research

<ul>
<li>We present a WEEKLY tactical global macro recap/analysis for several markets and stocks we track, grouped by sector.</li>
<li>We apply our quantitative models to each instrument's trend, to determine which stocks/markets are just starting a trend, are in the middle of it, or are about to end it.</li>
<li>
<a href="https://www.smartkarma.com/entities/amazon-com-inc" target="_blank" data-smartkarma-citation="entities:409:1" rel="noopener">Amazon</a>,  <a href="https://www.smartkarma.com/entities/spdr-gold-shares" target="_blank" data-smartkarma-citation="entities:8632:1" rel="noopener">GLD</a> and <a href="https://www.smartkarma.com/entities/s-p-asx-200" target="_blank" data-smartkarma-citation="entities:22901:1" rel="noopener">ASX 200</a> are quite overbought. <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics</a> , <a href="https://www.smartkarma.com/entities/bank-of-china-limited-class-h" target="_blank" data-smartkarma-citation="entities:656:1" rel="noopener">Bank of China (3988 HK)</a> and <a href="https://www.smartkarma.com/entities/united-states-oil-fund-lp" target="_blank" data-smartkarma-citation="entities:174:1" rel="noopener">United States Oil Fund LP (USO US)</a> are oversold.</li>
</ul>


We present a WEEKLY tactical global macro recap/analysis for several markets and stocks we track, grouped by sector.
We apply our quantitative models to each instrument's trend, to determine which stocks/markets are just starting a trend, are in the middle of it, or are about to end it.

Amazon,  GLD and ASX 200 are quite overbought. Samsung Electronics , Bank of China (3988 HK) and United States Oil Fund LP (USO US) are oversold.


WEEKLY Tactical Recap: SK Hynix, CATL, Samsung Electronics, Nikkei 225, GLD, TSLA, Etc.

<ul>
<li>Hynix might have rushed ADR to price off Q1 within 135 day window, with weak Q1 LTA pricing already baked in and expected to pressure forward earnings.</li>
<li>Hynix’s aggressive ADR timeline compromised fungibility, leading some investors to view the move as a signal of management’s cautious outlook on forward memory pricing.</li>
<li>Hynix is more likely to go with incremental filings in batches. That gives them flexibility to manage supply and support the underlying tactically instead of committing to a risky buyback.</li>
</ul>


Hynix might have rushed ADR to price off Q1 within 135 day window, with weak Q1 LTA pricing already baked in and expected to pressure forward earnings.
Hynix’s aggressive ADR timeline compromised fungibility, leading some investors to view the move as a signal of management’s cautious outlook on forward memory pricing.
Hynix is more likely to go with incremental filings in batches. That gives them flexibility to manage supply and support the underlying tactically instead of committing to a risky buyback.


Investigation into Hynix ADR Fungibility Restoration and Key Open Questions

South Korea

SK Hynix Inc. provides products and services for the electronic components industry. The Company manufactures semiconductors, such as dynamic random access memory (DRAM), NAND flash memory, and static random access memory (SRAM) chips.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

SK Hynix (000660 KS)