Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>With 70% of the review period complete, there could be 6 constituent changes for the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX)</a> in June.</li>
<li>The changes are driven mainly by the deletions with balancing adds to maintain the number of index constituents at 200.</li>
<li>The forecast adds have outperformed the forecast deletes but both sets of changes have underperformed the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX)</a>. </li>
</ul>


With 70% of the review period complete, there could be 6 constituent changes for the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) in June.
The changes are driven mainly by the deletions with balancing adds to maintain the number of index constituents at 200.
The forecast adds have outperformed the forecast deletes but both sets of changes have underperformed the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX). 


KOSPI200 Index Rebalance Preview: 6 Changes a Side for June

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>In this insight, we discuss a pair trade between DL Holdings Co (000210 KS) (go long) and DL E&amp;C (375500 KS) (go short).</li>
<li>In the past three months, DL Holdings' share price is down 9.9% versus DL E&amp;C which is up 21%. We believe this gap has become too excessive.</li>
<li>The shares sold short volume/total traded volume ratio is more than double for DL E&amp;C versus DL Holdings from 31 March to 9 April. </li>
</ul>


In this insight, we discuss a pair trade between DL Holdings Co (000210 KS) (go long) and DL E&amp;C (375500 KS) (go short).
In the past three months, DL Holdings' share price is down 9.9% versus DL E&amp;C which is up 21%. We believe this gap has become too excessive.
The shares sold short volume/total traded volume ratio is more than double for DL E&amp;C versus DL Holdings from 31 March to 9 April. 


A Pair Trade Between DL Holdings and DL E&C

<ul>
<li>In this insight, we highlight the recent pricing gap divergences of the major Korean holdcos and opcos which could provide trading opportunities in 1Q 2025.</li>
<li>The recent martial law cancellation and numerous impeachments of acting Presidents have raised political uncertainty in Korea resulting in widening of some gaps among numerous holdcos and opcos in Korea.</li>
<li>Of the 38 pair trades, 25 of them involved holdcos outperforming opcos in the past six months and the other 13 opcos outperforming holdcos in the same period.</li>
</ul>


In this insight, we highlight the recent pricing gap divergences of the major Korean holdcos and opcos which could provide trading opportunities in 1Q 2025.
The recent martial law cancellation and numerous impeachments of acting Presidents have raised political uncertainty in Korea resulting in widening of some gaps among numerous holdcos and opcos in Korea.
Of the 38 pair trades, 25 of them involved holdcos outperforming opcos in the past six months and the other 13 opcos outperforming holdcos in the same period.


Korean Holdcos Vs Opcos Gap Trading Opportunities in 1Q 2025

<ul>
<li>In this insight, we highlight the recent pricing gap divergences of the major Korean holdcos and opcos which could provide trading opportunities in 4Q 2024.</li>
<li>Volatility has been high in the Korean stock market in the past several weeks resulting in some interesting widening of some gaps among numerous holdcos and opcos in Korea. </li>
<li>Of the 38 pair trades, 19 of them involved holdcos outperforming opcos in the past six months and the other 19 opcos outperforming holdcos in the same period. </li>
</ul>


In this insight, we highlight the recent pricing gap divergences of the major Korean holdcos and opcos which could provide trading opportunities in 4Q 2024.
Volatility has been high in the Korean stock market in the past several weeks resulting in some interesting widening of some gaps among numerous holdcos and opcos in Korea. 
Of the 38 pair trades, 19 of them involved holdcos outperforming opcos in the past six months and the other 19 opcos outperforming holdcos in the same period. 


Korean Holdcos Vs Opcos Gap Trading Opportunities in 4Q 2024

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>KRX announced that both Hanwha Aerospace and the new Hanwha Industrial Solutions will be added to the KOSPI 200.</li>
<li>Since 2020, two K200 spinoffs had both companies remain: DL Holdings and DL E&amp;C in January 2021, and SK Telecom and SK Square in November 2021, with notable value increases.</li>
<li>This trade isn't risk-free and requires a sophisticated hedge setup, but the trading opportunities from this flow situation are worth close attention.</li>
</ul>


KRX announced that both Hanwha Aerospace and the new Hanwha Industrial Solutions will be added to the KOSPI 200.
Since 2020, two K200 spinoffs had both companies remain: DL Holdings and DL E&amp;C in January 2021, and SK Telecom and SK Square in November 2021, with notable value increases.
This trade isn't risk-free and requires a sophisticated hedge setup, but the trading opportunities from this flow situation are worth close attention.


Both Hanwha Aerospace Spinoffs Remain in KOSPI 200: Trading Value Gap Between Trading Suspension

South Korea

DL E&C Co.,Ltd. provides construction services. The Company builds industrial plants, infrastructure, high-rise residential buildings, low-rise apartments, villas, and other related areas. DL E&C offers services in Korea.

Price Gauge
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DL E&C (375500 KS)

KOSPI200 Index Rebalance Preview: 6 Changes a Side for June

There could be 6 constituent changes in June with passives needing to trade between 1.7-10.2x ADV in the stocks. The forecast adds have...

Brian Freitas

A Pair Trade Between DL Holdings and DL E&C

In this insight, we discuss a pair trade between DL Holdings Co (000210 KS) (go long) and DL E&C (375500 KS) (go short).

Douglas Kim

Korean Holdcos Vs Opcos Gap Trading Opportunities in 1Q 2025

In this insight, we highlight the recent pricing gap divergences of the major Korean holdcos and opcos which could provide trading opportunities in...

Douglas Kim

Korean Holdcos Vs Opcos Gap Trading Opportunities in 4Q 2024

In this insight, we highlight the recent pricing gap divergences of the major Korean holdcos and opcos which could provide trading opportunities in...

Douglas Kim

Both Hanwha Aerospace Spinoffs Remain in KOSPI 200: Trading Value Gap Between Trading Suspension

This post explores trading opportunities targeting the value gap for Hanwha Aerospace spinoffs before and after the trading suspension, driven...

Sanghyun Park

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