Correlation Between Exelon and First Internet

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

By analyzing existing cross correlation between Exelon and First Internet Bancorp, you can compare the effects of market volatilities on Exelon and First Internet 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 Exelon with a short position of First Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exelon and First Internet.

Diversification Opportunities for Exelon and First Internet

-0.74

Correlation Coefficient

Exelon  First Internet

Pay attention - limited upside

The 3 months correlation between Exelon and First is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Exelon and First Internet Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Internet Bancorp and Exelon 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 Exelon are associated (or correlated) with First Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Internet Bancorp has no effect on the direction of Exelon i.e., Exelon and First Internet go up and down completely randomly.

Pair Corralation between Exelon and First Internet

Considering the 90-day investment horizon Exelon is expected to generate 0.4 times more return on investment than First Internet. However, Exelon is 2.49 times less risky than First Internet. It trades about 0.04 of its potential returns per unit of risk. First Internet Bancorp is currently generating about 0.02 per unit of risk. If you would invest  3,689  in Exelon on August 7, 2025 and sell it today you would earn a total of  949.00  from holding Exelon or generate 25.73% return on investment over 90 days.

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

Exelon  vs.  First Internet Bancorp

Exelon

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Exelon are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Exelon is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

First Internet Bancorp

Risk-Adjusted Performance

Weakest

Over the last 90 days First Internet Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's fundamental drivers remain quite persistent which may send shares a bit higher in December 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Exelon and First Internet

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

The idea behind Exelon and First Internet Bancorp 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.