PepsiCo Correlations
| PEP Stock | EUR 163.90 1.02 0.62% |
The correlation of PepsiCo is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as PepsiCo moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if PepsiCo moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Average diversification
The correlation between PepsiCo and NYA is 0.13 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding PepsiCo and NYA in the same portfolio, assuming nothing else is changed.
PepsiCo |
The ability to find closely correlated positions to PepsiCo could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace PepsiCo when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back PepsiCo - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling PepsiCo to buy it.
Moving together with PepsiCo Stock
Moving against PepsiCo Stock
Related Correlations Analysis
| 0.68 | 0.41 | 0.8 | -0.4 | -0.22 | 8SP | ||
| 0.68 | 0.41 | 0.77 | -0.31 | -0.37 | 39O1 | ||
| 0.41 | 0.41 | 0.61 | 0.19 | -0.68 | 2DG | ||
| 0.8 | 0.77 | 0.61 | -0.29 | -0.46 | TLX | ||
| -0.4 | -0.31 | 0.19 | -0.29 | -0.28 | TM9 | ||
| -0.22 | -0.37 | -0.68 | -0.46 | -0.28 | INVN | ||
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Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
| High negative correlations
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Risk-Adjusted Indicators
There is a big difference between PepsiCo Stock performing well and PepsiCo Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze PepsiCo's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| 8SP | 1.06 | 0.03 | (0.01) | (0.65) | 1.24 | 2.16 | 6.74 | |||
| 39O1 | 5.35 | 1.35 | 0.20 | (36.11) | 5.33 | 9.40 | 67.94 | |||
| 2DG | 4.74 | 0.54 | 0.08 | (3.72) | 5.33 | 13.04 | 47.58 | |||
| TLX | 1.09 | 0.10 | 0.04 | 0.85 | 1.29 | 2.25 | 6.19 | |||
| TM9 | 2.55 | 0.09 | 0.00 | (0.06) | 4.30 | 7.02 | 33.24 | |||
| INVN | 3.09 | (0.53) | 0.00 | (0.74) | 0.00 | 6.14 | 36.27 |
Be your own money manager
Our tools can tell you how much better you can do entering a position in PepsiCo without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.Did you try this?
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PepsiCo Corporate Directors
PepsiCo corporate directors refer to members of a PepsiCo board of directors. The board of directors generally takes responsibility for the PepsiCo's affairs and long-term direction of the entity. A corporate director does not make decisions for the corporation on his own. As a member of the board of directors, she or he must function as a part of a group that makes decisions on behalf of the business only by the board of directors' meetings. To pass a resolution, a majority of PepsiCo's board members must vote for the resolution. The PepsiCo board of directors' duties also include the election, removal, and supervision of officers, including the adoption, amendment, and repeal of bylaws.| Darren Walker | Independent Director | Profile | |
| William Johnson | Independent Director | Profile | |
| Lloyd Trotter | Independent Director | Profile | |
| Alberto Ibarguen | Independent Director | Profile |
Already Invested in PepsiCo?
The danger of trading PepsiCo is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of PepsiCo is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than PepsiCo. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile PepsiCo is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether PepsiCo is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if PepsiCo Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Pepsico Stock. Highlighted below are key reports to facilitate an investment decision about Pepsico Stock: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in PepsiCo. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. For more detail on how to invest in PepsiCo Stock please use our How to Invest in PepsiCo guide.You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Complementary Tools for PepsiCo Stock analysis
When running PepsiCo's price analysis, check to measure PepsiCo's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy PepsiCo is operating at the current time. Most of PepsiCo's value examination focuses on studying past and present price action to predict the probability of PepsiCo's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move PepsiCo's price. Additionally, you may evaluate how the addition of PepsiCo to your portfolios can decrease your overall portfolio volatility.
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