Correlation Between First Bancorp and EXELON
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By analyzing existing cross correlation between First Bancorp and EXELON P 51, you can compare the effects of market volatilities on First Bancorp and EXELON 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 First Bancorp with a short position of EXELON. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Bancorp and EXELON.
Diversification Opportunities for First Bancorp and EXELON
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between First and EXELON is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding First Bancorp and EXELON P 51 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXELON P 51 and First Bancorp 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 First Bancorp are associated (or correlated) with EXELON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXELON P 51 has no effect on the direction of First Bancorp i.e., First Bancorp and EXELON go up and down completely randomly.
Pair Corralation between First Bancorp and EXELON
Given the investment horizon of 90 days First Bancorp is expected to under-perform the EXELON. In addition to that, First Bancorp is 1.46 times more volatile than EXELON P 51. It trades about -0.21 of its total potential returns per unit of risk. EXELON P 51 is currently generating about 0.03 per unit of volatility. If you would invest 9,086 in EXELON P 51 on November 28, 2024 and sell it today you would earn a total of 58.00 from holding EXELON P 51 or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
First Bancorp vs. EXELON P 51
Performance |
| Timeline |
| First Bancorp |
| EXELON P 51 |
First Bancorp and EXELON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Bancorp and EXELON
The main advantage of trading using opposite First Bancorp and EXELON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Bancorp position performs unexpectedly, EXELON 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 EXELON will offset losses from the drop in EXELON's long position.| First Bancorp vs. Home Bancorp | First Bancorp vs. First Business Financial | First Bancorp vs. LINKBANCORP | First Bancorp vs. Great Southern Bancorp |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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