Correlation Between Eurocash and PT Wilmar

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

By analyzing existing cross correlation between Eurocash SA and PT Wilmar Cahaya, you can compare the effects of market volatilities on Eurocash and PT Wilmar 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 Eurocash with a short position of PT Wilmar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurocash and PT Wilmar.

Diversification Opportunities for Eurocash and PT Wilmar

0.0

Correlation Coefficient

Eurocash  PT Wilmar

Pay attention - limited upside

The 3 months correlation between Eurocash and PTCXF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eurocash SA and PT Wilmar Cahaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Wilmar Cahaya and Eurocash 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 Eurocash SA are associated (or correlated) with PT Wilmar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Wilmar Cahaya has no effect on the direction of Eurocash i.e., Eurocash and PT Wilmar go up and down completely randomly.

Pair Corralation between Eurocash and PT Wilmar

If you would invest (100.00) in PT Wilmar Cahaya on October 6, 2025 and sell it today you would earn a total of  100.00  from holding PT Wilmar Cahaya or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Eurocash SA  vs.  PT Wilmar Cahaya

Eurocash SA

Risk-Adjusted Performance

Weakest

Over the last 90 days Eurocash SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, Eurocash is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

PT Wilmar Cahaya

Risk-Adjusted Performance

Weakest

Over the last 90 days PT Wilmar Cahaya has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, PT Wilmar is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Eurocash and PT Wilmar

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

The idea behind Eurocash SA and PT Wilmar Cahaya 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.