In today’s briefing:
- How Do We Play the Short-Term Buy Flows Sparked by NPS Reacting Fast to the President’s Subtle Push?
- Long CAR Group (CAR AU) Vs. Short Seek (SEK AU): Statistical Arbitrage Play with ~7% Target Return
How Do We Play the Short-Term Buy Flows Sparked by NPS Reacting Fast to the President’s Subtle Push?
- Lee slammed NPS’s logic, questioning its local equity cuts; Friday, the fund responded with ₩186.3bn net KOSPI buys — biggest since his inauguration.
- NPS sat out September’s rally, so Friday’s ₩186bn KOSPI buy looks like a reactive pivot to Lee’s comments, sparking local desks’ chatter and weekend buzz.
- KOSPI mid-caps with big NPS stakes (~5%+) could see short-term buying, as reactive flows follow Presidential Office chatter, with mid-caps below KRW 5tn offering the biggest price impact.
Long CAR Group (CAR AU) Vs. Short Seek (SEK AU): Statistical Arbitrage Play with ~7% Target Return
- Context: The CAR Group (CAR AU) vs. Seek (SEK AU) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
- Highlights: Going long CAR Group and short Seek 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.
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