Correlation Between PTT Global and Quaker Chemical

Can any of the company-specific risk be diversified away by investing in both PTT Global and Quaker Chemical at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining PTT Global and Quaker Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PTT Global Chemical and Quaker Chemical, you can compare the effects of market volatilities on PTT Global and Quaker Chemical and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in PTT Global with a short position of Quaker Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and Quaker Chemical.

Diversification Opportunities for PTT Global and Quaker Chemical

0.63

Correlation Coefficient

PTT Global  Quaker Chemical

Poor diversification

The 3 months correlation between PTT and Quaker is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and Quaker Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quaker Chemical and PTT Global is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on PTT Global Chemical are associated (or correlated) with Quaker Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quaker Chemical has no effect on the direction of PTT Global i.e., PTT Global and Quaker Chemical go up and down completely randomly.

Pair Corralation between PTT Global and Quaker Chemical

Assuming the 90 days trading horizon PTT Global Chemical is expected to generate 1.25 times more return on investment than Quaker Chemical. However, PTT Global is 1.25 times more volatile than Quaker Chemical. It trades about 0.16 of its potential returns per unit of risk. Quaker Chemical is currently generating about 0.1 per unit of risk. If you would invest  41.00  in PTT Global Chemical on April 20, 2025 and sell it today you would earn a total of  14.00  from holding PTT Global Chemical or generate 34.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

PTT Global Chemical  vs.  Quaker Chemical

PTT Global Chemical

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PTT Global Chemical are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, PTT Global unveiled solid returns over the last few months and may actually be approaching a breakup point.

Quaker Chemical

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Quaker Chemical are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Quaker Chemical reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PTT Global and Quaker Chemical

The main advantage of trading using opposite PTT Global and Quaker Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, Quaker Chemical can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Quaker Chemical will offset losses from the drop in Quaker Chemical's long position.

The idea behind PTT Global Chemical and Quaker Chemical pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.