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

Sanghyun Park

I investigate special situations, pairs, and index rebalancing trades in Korea.

Korea / Special Sits, Pairs, Index Rebalancing

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LG Energy & LG Chem Passive Flow In/Out Estimations & Trading Considerations on February 9

LG Energy IN/LG Chem OUT: TIGER (WISE) Done on Feb 8 & KODEX (FnGuide) Under Progress Until Feb 22

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Clepsydra Capital

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

Event-Driven

<ul>
<li>KODEX doing LG Energy/LG Chem rebalancing over ten trading days for two reasons: 1. minimize the impact on LG Chem and 2. reduce the yield gap with TIGER.</li>
<li>We need to keep an eye on the possibility that KODEX will complete its LG Energy/LG Chem rebalancing schedule earlier than the full ten trading days.</li>
<li>Of course, this is also a risky trading approach. But considering the current share prices of LG Energy and LG Chem, there is sufficient circumstantial probability to support this.</li>
</ul>


KODEX doing LG Energy/LG Chem rebalancing over ten trading days for two reasons: 1. minimize the impact on LG Chem and 2. reduce the yield gap with TIGER.
We need to keep an eye on the possibility that KODEX will complete its LG Energy/LG Chem rebalancing schedule earlier than the full ten trading days.
Of course, this is also a risky trading approach. But considering the current share prices of LG Energy and LG Chem, there is sufficient circumstantial probability to support this.
