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

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>The review period for the KOSPI 200 June rebalancing ends this Friday. This June rebalancing will have seven additions and seven deletions.</li>
<li>Additions: <a href="https://www.smartkarma.com/entities/f-f-co-ltd-new" target="_blank" data-smartkarma-citation="entities:33479:1" rel="noopener">F&amp;F (383220 KS)</a>, <a href="https://www.smartkarma.com/entities/meritz-fire-marine-insurance-co-ltd" target="_blank" data-smartkarma-citation="entities:20468:1" rel="noopener">Meritz Fire (000060 KS)</a>, <a href="https://www.smartkarma.com/entities/sd-biosensor-inc" target="_blank" data-smartkarma-citation="entities:33333:1" rel="noopener">SD Biosensor (137310 KS)</a>, <a href="https://www.smartkarma.com/entities/iljin-hysolus-co-ltd" target="_blank" data-smartkarma-citation="entities:33565:1" rel="noopener">Iljin Hysolus (271940 KS)</a>, <a href="https://www.smartkarma.com/entities/hanil-cement-co-ltd-new" target="_blank" data-smartkarma-citation="entities:27447:1" rel="noopener">Hanil Cement (300720 KS)</a>, <a href="https://www.smartkarma.com/entities/k-car" target="_blank" data-smartkarma-citation="entities:34118:1" rel="noopener">K Car (381970 KS)</a>, and Hana Tour (039130 KS).</li>
<li>Deletions: <a href="https://www.smartkarma.com/entities/cj-cgv-co-ltd" target="_blank" data-smartkarma-citation="entities:2885:1" rel="noopener">CJ CGV (079160 KS)</a>, <a href="https://www.smartkarma.com/entities/yungjin-pharmaceutical-co" target="_blank" data-smartkarma-citation="entities:9781:1" rel="noopener">Yungjin Pharmaceutical (003520 KS)</a>, <a href="https://www.smartkarma.com/entities/bukwang-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:15076:1" rel="noopener">Bukwang Pharmaceutical (003000 KS)</a>, <a href="https://www.smartkarma.com/entities/sk-discovery-co-ltd" target="_blank" data-smartkarma-citation="entities:5181:1" rel="noopener">Sk Discovery (006120 KS)</a>, <a href="https://www.smartkarma.com/entities/s-t-motiv-co-ltd" target="_blank" data-smartkarma-citation="entities:6116:1" rel="noopener">S&amp;T Motiv (064960 KS)</a>, <a href="https://www.smartkarma.com/entities/cuckoo-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:4231:1" rel="noopener">Cuckoo Holdings (192400 KS)</a>, and <a href="https://www.smartkarma.com/entities/nexen-tire-corp" target="_blank" data-smartkarma-citation="entities:14206:1" rel="noopener">Nexen Tire (002350 KS)</a>. </li>
</ul>


The review period for the KOSPI 200 June rebalancing ends this Friday. This June rebalancing will have seven additions and seven deletions.
Additions: F&amp;F (383220 KS), Meritz Fire (000060 KS), SD Biosensor (137310 KS), Iljin Hysolus (271940 KS), Hanil Cement (300720 KS), K Car (381970 KS), and Hana Tour (039130 KS).
Deletions: CJ CGV (079160 KS), Yungjin Pharmaceutical (003520 KS), Bukwang Pharmaceutical (003000 KS), Sk Discovery (006120 KS), S&amp;T Motiv (064960 KS), Cuckoo Holdings (192400 KS), and Nexen Tire (002350 KS). 


KOSPI 200 June Rebalancing: Nearly Finalized Results with 7 Adds/Deletes

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>On 19 April, the US CDC stated that the national mask requirement on public transportation is no longer in effect in the United States.</li>
<li>The CDC lifting the mask mandate is a key catalyst and other major countries are likely to follow the US in the coming months. </li>
<li>Will the world likely to become more like Shanghai and enforce even greater lockdown policies or will they become more like the US and drop social distancing and mask mandates?  </li>
</ul>


On 19 April, the US CDC stated that the national mask requirement on public transportation is no longer in effect in the United States.
The CDC lifting the mask mandate is a key catalyst and other major countries are likely to follow the US in the coming months. 
Will the world likely to become more like Shanghai and enforce even greater lockdown policies or will they become more like the US and drop social distancing and mask mandates?  


CDC Ends Public Transportation Mask Mandate & Will the World Follow Shanghai or Vice Versa?

Mirae Asset TIGER Secondary Cell ETF / Event-Driven

<ul>
<li>In general, the projection hit rate for the top market cap constituents was sufficiently high. And the correlation between their stock price direction and passive flow was also high.</li>
<li>However, the projection hit rate for the constituents with a small market cap was relatively low.</li>
<li>If we traded the proposed tradable names with an equal-weighted Long/Short basket, we would have achieved a return of 1.76%. Even excluding Hanjin Kal, we would have achieved 1.31%.</li>
</ul>


In general, the projection hit rate for the top market cap constituents was sufficiently high. And the correlation between their stock price direction and passive flow was also high.
However, the projection hit rate for the constituents with a small market cap was relatively low.
If we traded the proposed tradable names with an equal-weighted Long/Short basket, we would have achieved a return of 1.76%. Even excluding Hanjin Kal, we would have achieved 1.31%.


Recap on WISE Theme Indexes (TIGER ETFs) Rebalancing Trading on April 14

Thematic (Sector/Industry)

<ul>
<li>Starting Monday, 18 April, South Korea will lift almost all social distancing measures after nearly two years.</li>
<li>Under the new measures, the previous restrictions including midnight business hour curfew for restaurants, cafes, and other businesses will be completely lifted. </li>
<li>The pandemic to endemic reopening plays in Korea (19 stocks) are up on average 7% YTD, significantly outperforming KOSPI which is down 9.5% in the same period.</li>
</ul>


Starting Monday, 18 April, South Korea will lift almost all social distancing measures after nearly two years.
Under the new measures, the previous restrictions including midnight business hour curfew for restaurants, cafes, and other businesses will be completely lifted. 
The pandemic to endemic reopening plays in Korea (19 stocks) are up on average 7% YTD, significantly outperforming KOSPI which is down 9.5% in the same period.


End of Nearly All Social Distancing Measures in Korea & How My Views of Mask Wearing Has Changed

<ul>
<li>Three WISE theme indexes undergo quarterly rebalancing today at the close.</li>
<li>The flow projections shown below in the DETAIL are based on the closing prices of April 12.</li>
<li>We have 13 Long/Short tradable names based on these flow projections: an ADTV of at least ₩10B &amp; a passive flow impact of 0.10x ADTV or more</li>
</ul>


Three WISE theme indexes undergo quarterly rebalancing today at the close.
The flow projections shown below in the DETAIL are based on the closing prices of April 12.
We have 13 Long/Short tradable names based on these flow projections: an ADTV of at least ₩10B &amp; a passive flow impact of 0.10x ADTV or more


WISE Theme Indexes Rebalancing Today: Flow Projections as of Close on April 12

South Korea

Hana Tour Service Inc. wholesales a variety of travel related services.  The Company provides outbound, inbound and domestic travel packages and cooperates with credit card companies and Internet shopping malls to market its services. Hana Tour Service also works as general sales agency (GSA) of overseas cruise and rail passes.

Price Gauge
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Hana Tour Service (039130 KS)

KOSPI 200 June Rebalancing: Nearly Finalized Results with 7 Adds/Deletes

KOSPI 200 June rebalancing results are nearly finalized with seven additions and seven deletions. There have been several changes of late.

Sanghyun Park

CDC Ends Public Transportation Mask Mandate & Will the World Follow Shanghai or Vice Versa?

The CDC lifting the mask mandate is a key catalyst and other major countries are likely to follow the US in the coming months.

Douglas Kim

Recap on WISE Theme Indexes (TIGER ETFs) Rebalancing Trading on April 14

This post is a recap of our flow trading on the WISE Theme Indexes (TIGER ETFs) rebalancing, which was carried out on April 14.

Sanghyun Park

WISE Theme Indexes Rebalancing Today: Flow Projections as of Close on April 12

Three WISE Theme Indexes undergo quarterly rebalancing today at the close. This post screens 13 tradable names for a Long/Short basket day trading.

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

KOSPI 200 June Rebalancing: Nearly Finalized Results with 7 Adds/Deletes

KOSPI 200 June rebalancing results are nearly finalized with seven additions and seven deletions. There have been several changes of late.

Sanghyun Park

CDC Ends Public Transportation Mask Mandate & Will the World Follow Shanghai or Vice Versa?

The CDC lifting the mask mandate is a key catalyst and other major countries are likely to follow the US in the coming months.

Douglas Kim

Recap on WISE Theme Indexes (TIGER ETFs) Rebalancing Trading on April 14

This post is a recap of our flow trading on the WISE Theme Indexes (TIGER ETFs) rebalancing, which was carried out on April 14.

Sanghyun Park

End of Nearly All Social Distancing Measures in Korea & How My Views of Mask Wearing Has Changed

Starting Monday, 18 April, South Korea will lift almost all social distancing measures after nearly two years. The pandemic to endemic reopening...

Douglas Kim

WISE Theme Indexes Rebalancing Today: Flow Projections as of Close on April 12

Three WISE Theme Indexes undergo quarterly rebalancing today at the close. This post screens 13 tradable names for a Long/Short basket day trading.

Sanghyun Park