Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Bottom-Up

ICICI Lombard General Insurance / Equity Bottom-Up

ICICI Lombard General Insurance (ICICIGI IN)

<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 persist across three markets and six sectors.
</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 persist across three markets and six sectors.


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 (12 Jan 2025)

<ul>
<li>
Context: The <a href="https://www.smartkarma.com/entities/inpex-corp" target="_blank" data-smartkarma-citation="entities:20665:1" rel="noopener">Inpex (1605 JP)</a> vs. <a href="https://www.smartkarma.com/entities/nippon-electric-glass-co-ltd" target="_blank" data-smartkarma-citation="entities:2351:1" rel="noopener">Nippon Electric Glass (5214 JP)</a> price ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.</li>
<li>
Highlights: Going long <a href="https://www.smartkarma.com/entities/inpex-corp" target="_blank" data-smartkarma-citation="entities:20665:1" rel="noopener">Inpex (1605 JP)</a> and short <a href="https://www.smartkarma.com/entities/nippon-electric-glass-co-ltd" target="_blank" data-smartkarma-citation="entities:2351:1" rel="noopener">Nippon Electric Glass (5214 JP)</a> targets a 7% 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 Inpex (1605 JP) vs. Nippon Electric Glass (5214 JP) price ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.

Highlights: Going long Inpex (1605 JP) and short Nippon Electric Glass (5214 JP) targets a 7% 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 Inpex (1605 JP) Vs. Short Nippon Electric Glass (5214 JP): Statistical Arbitrage Targeting 7%

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Today after the close <a href="https://www.smartkarma.com/entities/stanley-electric-co-ltd" target="_blank" data-smartkarma-citation="entities:1330:1" rel="noopener">Stanley Electric (6923 JP)</a> announced a salutary Q1 result which was "ahead of in-line" in most metrics towards unchanged H1 and FY guidance. </li>
<li>The company also announced a BIG on-market buyback at 8.1% of shares out, to be bought back with a delayed start over the 7.5mos starting 13 August.</li>
<li>At last price, the buyback is ~10mm shares. The details are interesting and are worth a look. </li>
</ul>


Today after the close Stanley Electric (6923 JP) announced a salutary Q1 result which was "ahead of in-line" in most metrics towards unchanged H1 and FY guidance. 
The company also announced a BIG on-market buyback at 8.1% of shares out, to be bought back with a delayed start over the 7.5mos starting 13 August.
At last price, the buyback is ~10mm shares. The details are interesting and are worth a look. 


Stanley Electric (6923) - Salutary Q1 and BIG Buyback

<ul>
<li>Today, <a href="https://www.smartkarma.com/entities/nippon-electric-glass-co-ltd" target="_blank" data-smartkarma-citation="entities:2351:1" rel="noopener">Nippon Electric Glass (5214 JP)</a> announced an on-market buyback of up to 7.0mm shares (8.08%) spending up to ¥20bn from tomorrow through end-January 2025.</li>
<li>An impressive headline, but fewer shares. Importantly, this follows a ¥20bn buyback from last November. They are moving through their MTMP more quickly than expected.</li>
<li>This new buyback is worth about 25% of the inbound cross-holdings. And some of those holders plan to sell. This may be designed to let them sell in the market. </li>
</ul>


Today, Nippon Electric Glass (5214 JP) announced an on-market buyback of up to 7.0mm shares (8.08%) spending up to ¥20bn from tomorrow through end-January 2025.
An impressive headline, but fewer shares. Importantly, this follows a ¥20bn buyback from last November. They are moving through their MTMP more quickly than expected.
This new buyback is worth about 25% of the inbound cross-holdings. And some of those holders plan to sell. This may be designed to let them sell in the market. 


Big (Relatively Speaking) NEG (5214 JP) Buyback - Walking The Walk, Faster

David Blennerhassett

<ul>
<li>If you are still long the <a href="https://www.smartkarma.com/entities/hokuhoku-financial-group-inc" target="_blank" data-smartkarma-citation="entities:19006:1" rel="noopener">Financial Group (8377 JP)</a> from before, stay long.If you sold Hokuhoku from before, be long again, and buy on weakness</li>
<li>Disaster for arb players as AusSuper rewrites the record books as an investor class and shoots down Brookfield's sweetened Offer for <a href="https://www.smartkarma.com/entities/origin-energy-ltd" target="_blank" data-smartkarma-citation="entities:797:1" rel="noopener">Origin Energy (ORG AU)</a>.</li>
<li>
<a href="https://www.smartkarma.com/entities/kyocera-corp" target="_blank" data-smartkarma-citation="entities:753:1" rel="noopener">Kyocera (6971 JP)</a> announced Q2 results and lowered its full-year forecast. Then the CEO said it was "reconsidering" what to do with <a href="https://www.smartkarma.com/entities/kddi-corp" target="_blank" data-smartkarma-citation="entities:639:1" rel="noopener">KDDI (9433 JP)</a> shares (after an AGM disaster).</li>
</ul>


If you are still long the Financial Group (8377 JP) from before, stay long.If you sold Hokuhoku from before, be long again, and buy on weakness
Disaster for arb players as AusSuper rewrites the record books as an investor class and shoots down Brookfield's sweetened Offer for Origin Energy (ORG AU).

Kyocera (6971 JP) announced Q2 results and lowered its full-year forecast. Then the CEO said it was "reconsidering" what to do with KDDI (9433 JP) shares (after an AGM disaster).


Last Week in Event SPACE: Hokuhoku, Origin Energy, KDDI, BoJ

Japan

Nippon Electric Glass Co., Ltd. manufactures a wide range of glass related products.  The Company's products include fluorescent light tubes, lenses for light-emitting diodes (LEDs), ceramic integrated circuits (IC) packages, bulbs for cathode ray tube (CRT) displays, and precision sheet glass for liquid crystal displays (LCDs).

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Nippon Electric Glass (5214 JP)

Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (12 Jan 2025)

Insight on statistical pair trading opportunities across ten pairs in three markets and six sectors, offering unique perspective on relative value.

Gaudenz Schneider

Long Inpex (1605 JP) Vs. Short Nippon Electric Glass (5214 JP): Statistical Arbitrage Targeting 7%

Inpex vs. Nippon Electric Glass price ratio signals a ~7% relative value pair trade to the one-standard-deviation line, ideal for quant traders...

Gaudenz Schneider

Stanley Electric (6923) - Salutary Q1 and BIG Buyback

Stanley Electric had a decent Q1 and announced a big buyback. The buyback is probably bigger than followers of the company expected, but it is far...

Travis Lundy

Big (Relatively Speaking) NEG (5214 JP) Buyback - Walking The Walk, Faster

Nippon Electric Glass has long under-earned its asset base. It released a new MTMP promising ¥100bn of buybacks over 5yrs. Today it announced...

Travis Lundy

Last Week in Event SPACE: Hokuhoku, Origin Energy, KDDI, BoJ

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (12 Jan 2025)

​Insight on statistical pair trading opportunities across ten pairs in three markets and six sectors, offering unique perspective on relative value.

Gaudenz Schneider

Long Inpex (1605 JP) Vs. Short Nippon Electric Glass (5214 JP): Statistical Arbitrage Targeting 7%

Inpex vs. Nippon Electric Glass price ratio signals a ~7% relative value pair trade to the one-standard-deviation line, ideal for quant traders...

Gaudenz Schneider

Stanley Electric (6923) - Salutary Q1 and BIG Buyback

Stanley Electric had a decent Q1 and announced a big buyback. The buyback is probably bigger than followers of the company expected, but it is far...

Travis Lundy

Big (Relatively Speaking) NEG (5214 JP) Buyback - Walking The Walk, Faster

Nippon Electric Glass has long under-earned its asset base. It released a new MTMP promising ¥100bn of buybacks over 5yrs. Today it announced...

Travis Lundy

Last Week in Event SPACE: Hokuhoku, Origin Energy, KDDI, BoJ

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Insight on statistical pair trading opportunities across ten pairs in three markets and six sectors, offering unique perspective on relative value.