A Pair Trade Between DL Holdings and DL E&C

• In this insight, we discuss a pair trade between DL Holdings Co (000210 KS) (go long) and DL E&C (375500 KS) (go short).

• In the past three months, DL Holdings' share price is down 9.9% versus DL E&C which is up 21%. We believe this gap has become too excessive.

• The shares sold short volume/total traded volume ratio is more than double for DL E&C versus DL Holdings from 31 March to 9 April.