Local Pairs Trade Ideas

Pairs Trade Idea: Long Sappi/Short Mondi

On a relative basis, Sappi has underperformed Mondi and at current levels the pair looks to stabilizing (losing some downside momentum) to set up a possible bullish reversal where a trader would look to buy Sappi (SAP) while simultaneously going short (selling) the shares of Mondi plc (MNP).

Pairs Trade Idea: Long Dischem Pharmacies/Short Clicks

Relative to Clicks, Dischem Pharmacies appears to be developing a short term base which may be setting up a bullish reversal. I am monitoring the price for a potential pairs trading opportunity i.e. Long DCP/Short CLS.

 

Pairs Trade Idea: Long Shoprite/Short Woolworths

In the short term, SHP appears excessively oversold vs WHL. The RSI is trading at 13, the lowest level since 2003 (as far back as the chart data goes). This pair (Long SHP/Short WHL) could be a mean reversion opportunity in short term. Let’s see where the price settles before engaging.

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