Research brief 014

Could a neighboring leveraged trade move your stock’s closing price?

A connected-market model follows rebalancing pressure beyond the fund’s own underlying asset.

The idea worth investigating

Jihwan Woo asks whether watching each leveraged product in isolation misses pressure transmitted through related assets. The closing auction becomes a network problem, not just a single-fund calculation.

The full analysis examines the study and the practical question behind it: A connected-market model follows rebalancing pressure beyond the fund’s own underlying asset.

Paper-based analysis; no independent house test has been completed.

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The headline is the starting point. The subscriber analysis takes you through:

  • The Korean episode and its calibration
  • What the US comparison shows
  • Transmission, feedback and the limits of the evidence
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