Correlation Between Bank Mandiri and Frontier Communications
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Frontier Communications 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 Bank Mandiri and Frontier Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Mandiri Persero and Frontier Communications Parent, you can compare the effects of market volatilities on Bank Mandiri and Frontier Communications 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 Bank Mandiri with a short position of Frontier Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Frontier Communications.
Diversification Opportunities for Bank Mandiri and Frontier Communications
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Frontier is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Frontier Communications Parent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frontier Communications and Bank Mandiri 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 Bank Mandiri Persero are associated (or correlated) with Frontier Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frontier Communications has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Frontier Communications go up and down completely randomly.
Pair Corralation between Bank Mandiri and Frontier Communications
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the Frontier Communications. In addition to that, Bank Mandiri is 8.44 times more volatile than Frontier Communications Parent. It trades about -0.04 of its total potential returns per unit of risk. Frontier Communications Parent is currently generating about 0.19 per unit of volatility. If you would invest 3,704 in Frontier Communications Parent on August 27, 2025 and sell it today you would earn a total of 76.00 from holding Frontier Communications Parent or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Frontier Communications Parent
Performance |
| Timeline |
| Bank Mandiri Persero |
| Frontier Communications |
Bank Mandiri and Frontier Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Frontier Communications
The main advantage of trading using opposite Bank Mandiri and Frontier Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Frontier Communications 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 Frontier Communications will offset losses from the drop in Frontier Communications' long position.| Bank Mandiri vs. Zoom Video Communications | Bank Mandiri vs. SM Investments | Bank Mandiri vs. Canaf Investments | Bank Mandiri vs. Shenzhen Investment Holdings |
| Frontier Communications vs. Perdoceo Education Corp | Frontier Communications vs. Fast Retailing Co | Frontier Communications vs. Wah Fu Education | Frontier Communications vs. National Retail Properties |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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