Correlation Between Tsingtao Brewery and PTT Global

Can any of the company-specific risk be diversified away by investing in both Tsingtao Brewery and PTT Global 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 Tsingtao Brewery and PTT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Tsingtao Brewery and PTT Global Chemical, you can compare the effects of market volatilities on Tsingtao Brewery and PTT Global 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 Tsingtao Brewery with a short position of PTT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsingtao Brewery and PTT Global.

Diversification Opportunities for Tsingtao Brewery and PTT Global

-0.43

Correlation Coefficient

Tsingtao Brewery  PTT Global

Very good diversification

The 3 months correlation between Tsingtao and PTT is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Tsingtao Brewery and PTT Global Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT Global Chemical and Tsingtao Brewery 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 Tsingtao Brewery are associated (or correlated) with PTT Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTT Global Chemical has no effect on the direction of Tsingtao Brewery i.e., Tsingtao Brewery and PTT Global go up and down completely randomly.

Pair Corralation between Tsingtao Brewery and PTT Global

Assuming the 90 days trading horizon Tsingtao Brewery is expected to under-perform the PTT Global. But the stock apears to be less risky and, when comparing its historical volatility, Tsingtao Brewery is 1.99 times less risky than PTT Global. The stock trades about -0.09 of its potential returns per unit of risk. The PTT Global Chemical is currently generating about 0.16 of returns per unit of risk over similar time horizon. 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 Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Tsingtao Brewery  vs.  PTT Global Chemical

Tsingtao Brewery

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tsingtao Brewery has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's forward indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

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.

Pair Trading with Tsingtao Brewery and PTT Global

The main advantage of trading using opposite Tsingtao Brewery and PTT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsingtao Brewery position performs unexpectedly, PTT Global 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 PTT Global will offset losses from the drop in PTT Global's long position.

The idea behind Tsingtao Brewery and PTT Global 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.

Check out your portfolio center.

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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.