Index pairs that earn a deep dive
Not every contested relationship deserves a full pair study — here is how we decide with clients in Bangkok.
Pair deep dives are expensive relative to their narrow scope, so we push back when a committee wants five pairs “just in case.” The engagements that earn their fee usually share three traits.
First, the pair already appears in minutes or hedge documents by name. Second, the room disagrees about whether the link is structural or episodic. Third, a decision is pending — IPS language, a hedge review, or a risk limit — within a defined quarter.
SET versus regional financials, or a local equity gauge versus a global rate index, often meet that test for ASEAN stewards. A broad developed-market equity index versus another broad developed-market equity index rarely does; the disagreement is usually about allocation weight, not co-movement character.
If you are unsure, start with a stress review across a short list, then promote one contested pair into a deep dive. Sequence beats sprawl.