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>The review period for the <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225 (NKY INDEX)</a> March rebalance is now complete. Nikkei has also confirmed <a href="https://www.smartkarma.com/entities/advantest-corp" target="_blank" data-smartkarma-citation="entities:18107:1" rel="noopener">Advantest Corp (6857 JP)</a>'s capping at the rebalance. </li>
<li>We highlight 3 potential changes to the index and some close names that could be added/deleted at this rebalance or over the next couple of rebalances.</li>
<li>If the changes are as forecast, estimated one-way turnover at the rebalance is 1.35% leading to a round-trip trade of JPY 1tn (US$6.45bn).</li>
</ul>


The review period for the Nikkei 225 (NKY INDEX) March rebalance is now complete. Nikkei has also confirmed Advantest Corp (6857 JP)'s capping at the rebalance. 
We highlight 3 potential changes to the index and some close names that could be added/deleted at this rebalance or over the next couple of rebalances.
If the changes are as forecast, estimated one-way turnover at the rebalance is 1.35% leading to a round-trip trade of JPY 1tn (US$6.45bn).


Nikkei 225 Index Rebalance Preview (Mar 2026): Cutoff Done; Capping Confirmed; Constituent Changes?

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 eight pair trade opportunities persist across three markets and four 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 eight pair trade opportunities persist across three markets and four 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 (2 Feb 2026)

Equity/Index & Cross Asset Volatility Specialist, Cameron Design

Jay Cameron

Equity/Index & Cross Asset Volatility Specialist

Cameron Design

We specialize in financial products and volatility. Our strategies balance speed, data, and risk control to capture opportunities across global markets. Our research leverages AI and data analytics to continuously refine our algorithms and adapt to evolving market dynamics.

Event-Driven

<ul>
<li>A once-again 'Young Stock' with massive liquidity is set to challenge traditional entry rules, leveraging a recent precedent to secure a spot in the benchmark index.</li>
<li>The committee's focus remains on raising the index's liquidity floor, resulting in a systemic removal of legacy constituents from various industrial sectors.</li>
<li>Sector balance is another priority, driving the modernization of segments and correcting lopsided underrepresentation of Japanese sectors on the index.</li>
</ul>


A once-again 'Young Stock' with massive liquidity is set to challenge traditional entry rules, leveraging a recent precedent to secure a spot in the benchmark index.
The committee's focus remains on raising the index's liquidity floor, resulting in a systemic removal of legacy constituents from various industrial sectors.
Sector balance is another priority, driving the modernization of segments and correcting lopsided underrepresentation of Japanese sectors on the index.


2026 NK 225 Reconstitution Forecast: Kioxia’s "Young Stock" Ascendance & The Legacy Materials Purge

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>The Nikkei 225 data observation period is coming to a close. There aren't many trading days left. Recent moves have meant some changes in rankings. </li>
<li>However, I still see TWO ADDs and TWO DELs. There is one cap as of now and another is but 5% away from seeing a $3.2bn sell. </li>
<li>I see nearly $5.2bn of value to trade as of now. A 5% relative move by one stock in the next 18 days would make that $11.4bn.</li>
</ul>


The Nikkei 225 data observation period is coming to a close. There aren't many trading days left. Recent moves have meant some changes in rankings. 
However, I still see TWO ADDs and TWO DELs. There is one cap as of now and another is but 5% away from seeing a $3.2bn sell. 
I see nearly $5.2bn of value to trade as of now. A 5% relative move by one stock in the next 18 days would make that $11.4bn.


[Quiddity Index] Nikkei 225 Mar26 Rebal - 2 ADDs (3rd Poss?), 2 DELs (One New), 1 CAP, Another Close

<ul>
<li>The review period for the <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225 (NKY INDEX)</a> March rebalance ends in 4 weeks. Depending on the index committee discretion, there could be 1-3 changes at the rebalance.</li>
<li>
<a href="https://www.smartkarma.com/entities/advantest-corp" target="_blank" data-smartkarma-citation="entities:18107:1" rel="noopener">Advantest Corp (6857 JP)</a>'s index weight is currently above 10% and that will result in capping. <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> and <a href="https://www.smartkarma.com/entities/softbank-group-corp" target="_blank" data-smartkarma-citation="entities:315:1" rel="noopener">Softbank Group (9984 JP)</a> avoid capping for now.</li>
<li>The capping for <a href="https://www.smartkarma.com/entities/advantest-corp" target="_blank" data-smartkarma-citation="entities:18107:1" rel="noopener">Advantest Corp (6857 JP)</a> results in funding inflows for all the index constituents, though the impact tops out at 0.4x ADV.</li>
</ul>


The review period for the Nikkei 225 (NKY INDEX) March rebalance ends in 4 weeks. Depending on the index committee discretion, there could be 1-3 changes at the rebalance.

Advantest Corp (6857 JP)'s index weight is currently above 10% and that will result in capping. Fast Retailing (9983 JP) and Softbank Group (9984 JP) avoid capping for now.
The capping for Advantest Corp (6857 JP) results in funding inflows for all the index constituents, though the impact tops out at 0.4x ADV.


Nikkei 225 Index Rebalance Preview (Mar 2026): Potential Adds, Deletes, Capping & Other Changes

Japan

Tokuyama Corp produces inorganic and organic industrial chemicals, synthetic res ins, cement, and construction materials.  The Company's product lines include Portland cement, soda chemicals, and polycrystalline silicon.

Price Gauge
52-week Range	0.00 - 0.00
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Tokuyama Corp (4043 JP)

Nikkei 225 Index Rebalance Preview (Mar 2026): Cutoff Done; Capping Confirmed; Constituent Changes?

The review period is complete and Advantest's capping has been confirmed. We highlight potential and close adds and deletes for the index. There...

Brian Freitas

Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (2 Feb 2026)

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

Gaudenz Schneider

2026 NK 225 Reconstitution Forecast: Kioxia’s "Young Stock" Ascendance & The Legacy Materials Purge

A new 'Young Stock' with high liquidity challenges entry rules, as index committee focuses on raising liquidity floor and balancing sectors.

Jay Cameron

[Quiddity Index] Nikkei 225 Mar26 Rebal - 2 ADDs (3rd Poss?), 2 DELs (One New), 1 CAP, Another Close

The recent interest and move higher in metals means a change in expected Nikkei 225 DELETE. And the recent move higher in USDJPY and earnings means...

Travis Lundy

Nikkei 225 Index Rebalance Preview (Mar 2026): Potential Adds, Deletes, Capping & Other Changes

There could 1-3 changes for the NKY in March. Advantest will be capped in March and could be capped in September too. Passives need to trade...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Nikkei 225 Index Rebalance Preview (Mar 2026): Cutoff Done; Capping Confirmed; Constituent Changes?

The review period is complete and Advantest's capping has been confirmed. We highlight potential and close adds and deletes for the index. There...

Brian Freitas

Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (2 Feb 2026)

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

Gaudenz Schneider

2026 NK 225 Reconstitution Forecast: Kioxia’s "Young Stock" Ascendance & The Legacy Materials Purge

​A new 'Young Stock' with high liquidity challenges entry rules, as index committee focuses on raising liquidity floor and balancing sectors.

Jay Cameron

[Quiddity Index] Nikkei 225 Mar26 Rebal - 2 ADDs (3rd Poss?), 2 DELs (One New), 1 CAP, Another Close

The recent interest and move higher in metals means a change in expected Nikkei 225 DELETE. And the recent move higher in USDJPY and earnings means...

Travis Lundy

Nikkei 225 Index Rebalance Preview (Mar 2026): Potential Adds, Deletes, Capping & Other Changes

There could 1-3 changes for the NKY in March. Advantest will be capped in March and could be capped in September too. Passives need to trade...

Brian Freitas

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

A new 'Young Stock' with high liquidity challenges entry rules, as index committee focuses on raising liquidity floor and balancing sectors.