PHL PAIRS Trading

[drbubb]

PHL "PAIRS Trading"* ...

Monitoring two stocks with similar fundamentals, with the aim of owning the cheaper one, and maybe switching when it is favorable to do so

SCC/ Semirara vs DMC.. 10d: Ytd / SCC:10.30 / DMC:4.40= r2.34. (-17.9% under Ave):
ye'19: 22.00/6.61=r3.33, H: 23.90/8.41=r2.84, L: 8.30/3.10=r2.68 :ave.r-2.95

Ytd : +PSEI // SCC:10.30 / DMC:4.40= r2.34.

LPZ/ Lopez vs ABS .. 10d: Ytd / LPZ :2.58 / ABS:11.32= r22.8%. (- 8.4% under Ave):
ye'19: 3.71/15.80=r23.5%, H: 4.38/24.85=r17.6%, L: 2.23/6.66=r33.5% :ave.r-24.9%

Ytd : +PSEI // LPZ :2.58 / ABS:11.32= r22.8%

TFHI/ Top Frontier vs SMC .. 10d: Ytd / TFHI :124.0 / SMC:101.0= r122.8%. (- 13.8% under Ave):
ye'19: 214./164.=r130.5%, H: 230./174.=r132.2%, L: 117./72.5=r161.4% :ave.r-141.4%

Ytd : +PSEI // TFHI :124.0 / SMC:101.0= r122.8%

JFC/ Jollibee vs MCD/ McDonalds .. 10d: Ytd / JFC :172.5 / McD:214.7= r80.3% (- 21.1% under Ave):
ye'19: 216./198.2=r130.5%, H: 235./231.9=r101.3%, L: 91.1/124.2=r73.3% :ave.r-101.7%

Ytd : +PSEI // JFC :172.5 / McD:214.7= r80.3%

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* Pairs trade

A pairs trade or pair trading is a market neutral trading strategy enabling traders to profit from virtually any market conditions: uptrend, downtrend, or sideways movement. This strategy is categorized as a statistical arbitrage and convergence trading strategy. Wikipedia

[drbubb]

I got these comments on a Viber chat:

+ Your posts are not ignored: (but sometimes) we are all left scratching our heads

+ Unbelievable trades

Some of the charts may look complicated, but if you look at them on a laptop, the will be easier to see, and the cross market idea of laying charts on top of each other is a really powerful way of sizing up historical discrepancies in prices

The JFC versus MCD trade,...

I targeted about 3-4 weeks ago.  And it was one were it was possible to go long the JFC side in PHL, and short MCD by buying US-traded puts, and that would be a more conventional pairs trade:  Going Long the cheap side, and Short the expensive side.

After the 25% move in just 10 days, I would recommend some profit-taking, by maybe closing 1/3 to 1/2 the position

[drbubb]

SAN MIGUEL vs. TFHI, TLT

From Feb.2020: +FB+Gsmi: 5yr: 2yr: 1yr: 10d

Stock:  Price : BkVal.  Pr/BV: PER : Yield : L-Range-H :
SMC : P95.00: 137.3 : 69.2%: N/A : 1.47%: 92.10- 112.5
TFHI : P95.25: 484.7: 19.7 %: N/A : 0.00%: 92.00-125.9
FB.   : P47.00:  15.81 : 297.%: 13.4: 3.96%: 34.10- 70.20
GSMI: 115.00:  41.03: 280.%: 7.49: 4.78%: 96.00- 119.0
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