In today’s briefing:
- Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (8 Sep)
- ECM Weekly (8 September 2025)- Metaplanet, Lifedrink, Koei, Hesai, Orion, Myungin, Hesai, Chery
- Bank of Queensland (BOQ AU) Vs. CBA (CBA AU): Quant-Driven Pair Trade Following Potential Overshoot
- BBVA-Sabadell: Deal Launches Underwater, Arbitrage Still Asymmetric
Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (8 Sep)
- 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 six pair trade opportunities across three markets and four 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.
ECM Weekly (8 September 2025)- Metaplanet, Lifedrink, Koei, Hesai, Orion, Myungin, Hesai, Chery
- Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
- On the IPO front, a few US$1bn+ IPOs are said to be looking to launch later this month, across regions.
- On the placements front, deals continue to flow through as the market remains receptive.
Bank of Queensland (BOQ AU) Vs. CBA (CBA AU): Quant-Driven Pair Trade Following Potential Overshoot
- Context: The Bank Of Queensland (BOQ AU) vs. Commonwealth Bank (CBA AU) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
- Highlights: Going long Bank Of Queensland (BOQ AU) and short Commonwealth Bank of Australia (CBA AU) targets a 4% return, with Bank Of Queensland (BOQ AU) supported by cheaper valuations.
- 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.
BBVA-Sabadell: Deal Launches Underwater, Arbitrage Still Asymmetric
- BBVA’s bid goes live on 8 Sept, but a –8.71% spread and poor optics keep tactical long SAB / short BBVA trades attractive.
- Sabadell continues to boost standalone appeal via dividends, TSB sale, and strategic capital returns, reducing shareholder incentive to tender at current terms.
- Legal overhang and merger restrictions extend into 2028, capping synergies and reinforcing the asymmetry in event-driven positioning ahead of potential bid adjustments.
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