Shorting Kakao Pay on K200 Sector Index Passive Outflow Due to GICS Change on June 8

Gravity Works As WeWork Doesn't; Now Plan B

Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Event-Driven

<ul>
<li>The fact that KS200 IT has a significantly higher AUM provides a flow trading opportunity. This is due to the change in GICS for Kakao Pay from IT to Financials.</li>
<li>It has been observed that Kakao Pay's DTV has recently decreased significantly. This may result in the flow size reaching up to 1.4 times DTV.</li>
<li>It is advisable to design an outright short position for day trading purposes. Additionally, a more aggressive approach can be considered by combining a long position on Samsung SDS.</li>
</ul>


The fact that KS200 IT has a significantly higher AUM provides a flow trading opportunity. This is due to the change in GICS for Kakao Pay from IT to Financials.
It has been observed that Kakao Pay's DTV has recently decreased significantly. This may result in the flow size reaching up to 1.4 times DTV.
It is advisable to design an outright short position for day trading purposes. Additionally, a more aggressive approach can be considered by combining a long position on Samsung SDS.


Official Results of KOSPI 200 Sector Indices Rebalancing: Kakao Pay's Sector Change Confirmed

Kakaopay

Official Results of KOSPI 200 Sector Indices Rebalancing: Kakao Pay's Sector Change Confirmed