In today’s briefing:
- RPMGlobal (RUL AU) In Caterpillar’s Crosshairs
- Long Macquarie (MQG AU) Vs. Short NAB (NAB AU): A Quant-Driven Pair Trade
RPMGlobal (RUL AU) In Caterpillar’s Crosshairs
- RPMGlobal Holdings Limited (RUL AU), a mining software technology provider, has entered into a trading halt ahead of a rumoured tilt from Caterpillar Inc (CAT US).
- No price has been made public; although local media are reporting an Offer Price of $5/share, a 32.6% premium to undisturbed.
- Shares will be suspended until the 2nd September. Earlier this year, RPMGlobal transitioned to a pure-play software company after offloading its advisory division.
Long Macquarie (MQG AU) Vs. Short NAB (NAB AU): A Quant-Driven Pair Trade
- Context: The Macquarie Group (MQG AU) over National Australia Bank (NAB AU) price-ratio has deviated two standard deviations from its one-year average, presenting a potential relative value opportunity.
- Highlights: The pair is trading just at the border of the 2 standard deviation threshold which triggers the trade open signal. Monitor to find a good entry point.
- 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.
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