Market Intelligence & SPECIALISED Capital Markets Services
Independence is
key to FCS success.
Pairs Trading
Model
FCS has a proprietary Pairs Trading model, based on advanced statistics covering European and US markets, available to clients.
Pairs trading is a non-directional strategy that speculates on the price movements between
two instruments. The key her is the relative movements between the two sets of prices.
Pairs trading is a sophisticated trading strategy because it requires skills that are different to
long-only investing. Statistical knowledge quantitative back testing, technical analysis and/
or fundamental know-how are all needed to some extent to create and manage a successful
pairs trading strategy.
When trading on the differential movement of two securities, you either speculate that they
will narrow (convergence) or wide (divergence). The trick is to trade at the right time.
The reason is that the disparity in value may sometimes widen further – outside historical
boundaries – causing losses to the pair trade.
Event Driven Strategy
FCS assist clients to identify companies with significant upside or downside relative to the
current trading levels, identifying unique angles and opportunities.
Merger Arbitrage
We monitor the main European and US deals with a full analysis of deals (extensive
timetable, conditions, risks).
SPAC Arbitrage
Monitoring the US and international SPAC universe, tracking pre-deal SPACs (new issues,
NAV calculations, timetable) and announced deals (terms, timetable, risks) in order to
highlight arbitrage opportunities in pre-deal and announced deal SPACs.
As data increasingly becomes commoditised, free thinking becomes priceless.
We connect our unique dot-connecting abilities with our in-depth analytical work and our relevant historical perspectives to create differentiated, money-making insights that help our clients’ investment process and investment outcomes.
