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 results are pretty much in line with the predictions, except for Hanwha Aerospace which made it to LARGE instead of Hyundai Marine &amp; Fire Insurance.</li>
<li>Assuming that ten names, including Hyundai Marine, were traded in a LONG/SHORT basket with equal weight, the yield from August 17 to the last close would have been 4.6%.</li>
<li>I would still approach with an equal-weighted basket trading until this Thursday. This flow trading usually loses its effect rapidly after rebalancing. So, I wouldn't carry it beyond this Thursday.</li>
</ul>


The results are pretty much in line with the predictions, except for Hanwha Aerospace which made it to LARGE instead of Hyundai Marine &amp; Fire Insurance.
Assuming that ten names, including Hyundai Marine, were traded in a LONG/SHORT basket with equal weight, the yield from August 17 to the last close would have been 4.6%.
I would still approach with an equal-weighted basket trading until this Thursday. This flow trading usually loses its effect rapidly after rebalancing. So, I wouldn't carry it beyond this Thursday.


KOSPI Size Index Migration: Official Results & Trading Approach Towards Implementation

<ul>
<li>Poongsan was pushed out of the 110% threshold in the average daily market ranking at the last minute. So, CJ CGV gets to remain in the KOSPI 200.</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 &amp; Marine (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>, <a href="https://www.smartkarma.com/entities/hana-tour-service-inc" target="_blank" data-smartkarma-citation="entities:4852:1" rel="noopener">Hana Tour (039130 KS)</a> </li>
<li>Deletions: <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>, <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/poongsan-corp" target="_blank" data-smartkarma-citation="entities:16504:1" rel="noopener">Poongsan Corp (103140 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>
</li>
</ul>


Poongsan was pushed out of the 110% threshold in the average daily market ranking at the last minute. So, CJ CGV gets to remain in the KOSPI 200.
Additions: F&amp;F (383220 KS), Meritz Fire &amp; Marine (000060 KS), SD Biosensor (137310 KS), Iljin Hysolus (271940 KS), Hanil Cement (300720 KS), K Car (381970 KS), Hana Tour (039130 KS) 
Deletions: Nexen Tire (002350 KS), Yungjin Pharmaceutical (003520 KS), Poongsan Corp (103140 KS), Bukwang Pharmaceutical (003000 KS), SK Discovery (006120 KS), S&amp;T Motiv (064960 KS), Cuckoo Holdings (192400 KS)



KOSPI 200 Rebalancing Last-Minute Change to Deletions: Poongsan Pushed Out for CJ CGV

<ul>
<li>Since we are currently at a point of two months toward the KOSPI 200 rebalancing, we should start building up positions on stocks with a higher probability among the candidates.</li>
<li>Six additions for position buildups: <strong>F&amp;F (383220 KS), Meritz Fire (000060 KS), SD Biosensor (137310 KS), Iljin Hysolus (271940 KS), Hanil Cement (300720 KS), &amp; K Car (381970 KS)</strong>
</li>
<li>Six deletions for position buildups: <strong>Nexen Tire (002350 KS), Cuckoo Holdings (192400 KS), S&amp;T Motiv (064960 KS), Sk Discovery (006120 KS), Bukwang Pharmaceutical (003000 KS), &amp; Poongsan Corp (103140 KS)</strong>
</li>
</ul>


Since we are currently at a point of two months toward the KOSPI 200 rebalancing, we should start building up positions on stocks with a higher probability among the candidates.
Six additions for position buildups: F&amp;F (383220 KS), Meritz Fire (000060 KS), SD Biosensor (137310 KS), Iljin Hysolus (271940 KS), Hanil Cement (300720 KS), &amp; K Car (381970 KS)

Six deletions for position buildups: Nexen Tire (002350 KS), Cuckoo Holdings (192400 KS), S&amp;T Motiv (064960 KS), Sk Discovery (006120 KS), Bukwang Pharmaceutical (003000 KS), &amp; Poongsan Corp (103140 KS)



KOSPI 200 Rebalancing D-60: Names for Position Buildups

<ul>
<li>The screening results based on the average market cap for the screening period until the last closing price have seven additions/deletions.</li>
<li>LG Energy will make Fast Entry. The one to make room for LG Energy should be Dongwon F&amp;B, an additional deletion to the seven deletions through the preliminary filtering.</li>
<li>F&amp;F Holdings may fail to meet the minimum float rate. If it doesn't make KOSPI 200 this time, Hyundai Marine &amp; Fire Insurance will get to stay in the Index.</li>
</ul>


The screening results based on the average market cap for the screening period until the last closing price have seven additions/deletions.
LG Energy will make Fast Entry. The one to make room for LG Energy should be Dongwon F&amp;B, an additional deletion to the seven deletions through the preliminary filtering.
F&amp;F Holdings may fail to meet the minimum float rate. If it doesn't make KOSPI 200 this time, Hyundai Marine &amp; Fire Insurance will get to stay in the Index.


KOSPI 200 Rebalancing Screening: Prediction Likelihood, Special Issues, & Passive Impacts

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Quantitative Analysis

<ul>
<li>In this insight, we discuss 19 value oriented stocks in KOSPI200 that have been big outperformers YTD but whose share prices have risen less than 100% from 3/20/2020 to 1/25/2022.</li>
<li>Among the 19 stocks in this list, 32% are financials (6 companies) and 16% are F&amp;B (3 companies).</li>
<li>These 19 value-oriented stocks could continue to outperform the market in the next few weeks due to rising inflation, geopolitical uncertainties, and uncertainties regarding how the COVID-19 narrative will end.</li>
</ul>


In this insight, we discuss 19 value oriented stocks in KOSPI200 that have been big outperformers YTD but whose share prices have risen less than 100% from 3/20/2020 to 1/25/2022.
Among the 19 stocks in this list, 32% are financials (6 companies) and 16% are F&amp;B (3 companies).
These 19 value-oriented stocks could continue to outperform the market in the next few weeks due to rising inflation, geopolitical uncertainties, and uncertainties regarding how the COVID-19 narrative will end.


Outperforming Value Stocks With Contrarian Qualities in KOSPI200

South Korea

Hyundai Marine & Fire Insurance Co., Ltd. (HDMF) is a property and casualty insurer.  The Company's products include auto, fire, marine, general liability, leisure, travel, pension, and medical insurances.

Hyundai Marine & Fire Insurance Co., Ltd (001450 KS)

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Hyundai Marine & Fire Insurance Co., Ltd (001450 KS)

KOSPI Size Index Migration: Official Results & Trading Approach Towards Implementation

This post looks at the official results of the KOSPI Size Index migration in the September rebalancing and discusses the noteworthy flow patterns...

Sanghyun Park

KOSPI 200 Rebalancing Last-Minute Change to Deletions: Poongsan Pushed Out for CJ CGV

KOSPI 200's upcoming rebalancing sees one last-minute change to the deletions. Poongsan Corp was pushed out by the average market cap ranking....

Sanghyun Park

KOSPI 200 Rebalancing D-60: Names for Position Buildups

This post suggests six additions and six deletions that we should consider for position buildups as we are two months away from the KOSPI 200...

Sanghyun Park

KOSPI 200 Rebalancing Screening: Prediction Likelihood, Special Issues, & Passive Impacts

This post has the screening results of the KOSPI 200 rebalancing, with a focus on prediction likelihood, special considerations, and passive impacts.

Sanghyun Park

Outperforming Value Stocks With Contrarian Qualities in KOSPI200

In this insight, we discuss 19 value oriented stocks in KOSPI200 that have been big outperformers YTD but whose share prices have risen less than...

Douglas Kim

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