SAS Chart, page-378

I thought I'd include this in the charts thread although it may seem a bit off topic (and may be way off-track!)

I wrote a long post comparing SAS prices traded on two exchanges: on the ASX traded as SAS, and SAS traded as B3E on the Frankfurt Stock Exchange.


I realised looking into this example the volumes on the Frankfurt Stock Exchange are so low as to not warrant any real weight. But since I drafted the post I thought I'd share anyway as a matter of interest.

There is a German forum that discusses this stock as it is traded on the Frankfurt Exchange.
http://www.boersennews.de/markt/aktien/sky-und-space-global-au000000sas7/87385/comment
I'm not fluent in German and simply used translate to read it but got the gist. A lot less downramping on that forum. Anyway...today I noted the price has risen on the Frankfurt exchange and it seems as though there has been more volatility on that exchange than the ASX over the last few days. The volume levels are really low so (as mentioned) it's probably not a fair comparison but it peaked my interest and made a few charts.

In the chart below I've used the Frankfurt ticker symbol B3E (which is SAS on that exchange) and converted it to AUD to discover that it's sitting at around .87.  In comparison, SAS on the ASX closed today at .81. That 's a difference of 7.4%.




In this chart below the orange line is the SAS price in AUD, whereas the candlesticks show the SAS price being traded as B3E in Frankfurt. Big differences especially over the last few days.




Here is another chart below showing price differences of SAS stock between Frankfurt and ASX directly. i.e. price of FRANKFURT:B3E in AUD minus ASX:SAS in AUD.

Ignoring the % prices in blue in the chart below (not helpful) and it's possible to see there are variations of around .025 cents against .08 cents. You can also see the underneath the candlestick chart two sets of orange lines. The top orange line represents B3E and the next lower. See the volatility of at the end of the B3E line vs the evenness of SAS at the ASX?



So overall not much I could conclude except with lower volumes in Frankfurt there is less liquidity and hence probably greater volatility.

I was kind of hoping to uncover signs of a team trading arbitrage across the exchanges - of uprampers in Germany paired with downrampers on the ASX - but the amount of stock traded doesn't suggest this. A lot of work for little volumes!

Does anyone have experience or knowledge of arbitrage trading the same asset between different stock exchanges? i.e. ASX and Frankfurt? Obviously factors of how to arbitrage between exchanges, associated fees and currency conversions need to be taken into account but the way in which the stock is available on various exchanges made me consider the options.

Cheerio,
Dawatz

p.s. Hunterr...I'm holding again