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 14 pair trade opportunities across four markets and six 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 14 pair trade opportunities across four markets and six 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 (13 Oct)

Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>
Equity Surge: Japanese stocks rallied as investors priced in Abenomics-style stimulus under PM-elect Takaichi, with Nikkei +5%, Topix +2%. </li>
<li>
Infrastructure and tech led gains: SoftBank, Yaskawa, Fujikura, Mani, and Fast Retailing surged on earnings beats, robotics expansion, and growth in data center components. </li>
<li>
Risks: Political fragility, inflation-wage pressures, and US reaction to yen depreciation pose potential hurdles to market optimism.</li>
</ul>



Equity Surge: Japanese stocks rallied as investors priced in Abenomics-style stimulus under PM-elect Takaichi, with Nikkei +5%, Topix +2%. 

Infrastructure and tech led gains: SoftBank, Yaskawa, Fujikura, Mani, and Fast Retailing surged on earnings beats, robotics expansion, and growth in data center components. 

Risks: Political fragility, inflation-wage pressures, and US reaction to yen depreciation pose potential hurdles to market optimism.


Japan Strategy Weekly: Takaichi Trade Ignites Record Rally

<ul>
<li>
Context: The <a href="https://www.smartkarma.com/entities/abc-mart-inc" target="_blank" data-smartkarma-citation="entities:3213:1" rel="noopener">ABC Mart (2670 JP)</a> vs. <a href="https://www.smartkarma.com/entities/fast-retailing-co-ltd" target="_blank" data-smartkarma-citation="entities:751:1" rel="noopener">Fast Retailing (9983 JP)</a> price-ratio has deviated more than three standard deviations from its one-year average, presenting a potential relative value opportunity.</li>
<li>
Highlights: Going long ABC Mart (2670 JP) and short Fast Retailing (9983 JP) targets an 11% return. Both companies reported very recently.</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 ABC Mart (2670 JP) vs. Fast Retailing (9983 JP) price-ratio has deviated more than three standard deviations from its one-year average, presenting a potential relative value opportunity.

Highlights: Going long ABC Mart (2670 JP) and short Fast Retailing (9983 JP) targets an 11% return. Both companies reported very recently.

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.


ABC Mart (2670 JP) Vs. Fast Retailing (9983 JP): Quant-Driven Japan Retail Pair Trade

Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

<ul>
<li>Kokusai Electric deal yesterday with AMAT selling a 10.7m clip is a mere morsel for the market and helps clear overhead risk.</li>
<li>This creates a good setup for long Kokusai short Advantest which should see some reticence creep in as it hits the NKY CPAF cap.</li>
<li>Trump is trying to force homebuilders to build more as a panacea for the housing affordability crisis. Not good for margins.</li>
</ul>


Kokusai Electric deal yesterday with AMAT selling a 10.7m clip is a mere morsel for the market and helps clear overhead risk.
This creates a good setup for long Kokusai short Advantest which should see some reticence creep in as it hits the NKY CPAF cap.
Trump is trying to force homebuilders to build more as a panacea for the housing affordability crisis. Not good for margins.


Japan Morning Connection: Intel Announces Its Long Awaited 18A Process

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

FineToday Holdings / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/finetoday-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:44092:1" rel="noopener">FineToday Holdings (420A JP)</a> (FT) is planning to raise around US$280m via selling a mix of primary and secondary shares.</li>
<li>FineToday (FT) is a beauty and personal care company in Asia offering a range of products, including hair care, skin care and body care products.</li>
<li>In our previous note, we had looked at its past performance. In this note, we will talk about valuations.</li>
</ul>



FineToday Holdings (420A JP) (FT) is planning to raise around US$280m via selling a mix of primary and secondary shares.
FineToday (FT) is a beauty and personal care company in Asia offering a range of products, including hair care, skin care and body care products.
In our previous note, we had looked at its past performance. In this note, we will talk about valuations.


FineToday Pre-IPO - Updated Peer Comparison and Thoughts on Valuation

Japan

FAST RETAILING CO., LTD. operates a chain of clothing stores, UNIQLO, throughout Japan and in other markets overseas including UK, China, Hong Kong, South Korea, US, France, Singapore and Russia.  The Company designs, manufactures, and retails its own line of casual clothing.

Price Gauge
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Fast Retailing (9983 JP)

Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (13 Oct)

Statistical methodology identifies 14 pair trade opportunities across four markets and six sectors, offering unique insights into relative value.

Gaudenz Schneider

Japan Strategy Weekly: Takaichi Trade Ignites Record Rally

Japanese stocks surge on hopes of stimulus under new PM, led by infrastructure and tech gains, but political risks and inflation concerns loom.

Mark Chadwick

ABC Mart (2670 JP) Vs. Fast Retailing (9983 JP): Quant-Driven Japan Retail Pair Trade

Long ABC Mart (2670 JP) vs. Short Fast Retailing (9983 JP) price-ratio presents a potential 11% return opportunity for quantitative traders...

Gaudenz Schneider

Japan Morning Connection: Intel Announces Its Long Awaited 18A Process

Intel's 18A process lauded as the most advanced chip production technology developed in the US. Wolfspeed continues higher on the rumour that the...

Andrew Jackson

FineToday Pre-IPO - Updated Peer Comparison and Thoughts on Valuation

FineToday Holdings (420A JP) (FT) is planning to raise around US$280m via selling a mix of primary and secondary shares. In this note, we talk...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (13 Oct)

​Statistical methodology identifies 14 pair trade opportunities across four markets and six sectors, offering unique insights into relative value.

Gaudenz Schneider

Japan Strategy Weekly: Takaichi Trade Ignites Record Rally

​Japanese stocks surge on hopes of stimulus under new PM, led by infrastructure and tech gains, but political risks and inflation concerns loom.

Mark Chadwick

ABC Mart (2670 JP) Vs. Fast Retailing (9983 JP): Quant-Driven Japan Retail Pair Trade

​Long ABC Mart (2670 JP) vs. Short Fast Retailing (9983 JP) price-ratio presents a potential 11% return opportunity for quantitative traders...

Gaudenz Schneider

Japan Morning Connection: Intel Announces Its Long Awaited 18A Process

Intel's 18A process lauded as the most advanced chip production technology developed in the US. Wolfspeed continues higher on the rumour that the...

Andrew Jackson

FineToday Pre-IPO - Updated Peer Comparison and Thoughts on Valuation

FineToday Holdings (420A JP) (FT) is planning to raise around US$280m via selling a mix of primary and secondary shares. In this note, we talk...

Sumeet Singh

Statistical methodology identifies 14 pair trade opportunities across four markets and six sectors, offering unique insights into relative value.

Japanese stocks surge on hopes of stimulus under new PM, led by infrastructure and tech gains, but political risks and inflation concerns loom.

Long ABC Mart (2670 JP) vs. Short Fast Retailing (9983 JP) price-ratio presents a potential 11% return opportunity for quantitative traders...