| PEP Stock | | | USD 159.50 0.76 0.48% |
The current 90-days correlation between PepsiCo and Monster Beverage Corp is 0.48 (i.e., Very weak diversification). 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 correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.
PepsiCo Correlation With Market
Good diversification
The correlation between PepsiCo and DJI is -0.04 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding PepsiCo and DJI in the same portfolio, assuming nothing else is changed.
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Moving together with PepsiCo Stock
Moving against PepsiCo Stock
Related Correlations Analysis
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 | COCO | | CELH | | CELH | | MNST | | COCO | | KOF | | KOF | | MNST |
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Risk-Adjusted IndicatorsThere 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.
PepsiCo Corporate Executives
Elected by the shareholders, the PepsiCo's board of directors comprises two types of representatives: PepsiCo inside directors who are chosen from within the company, and outside directors, selected externally and held independent of PepsiCo. The board's role is to monitor PepsiCo's management team and ensure that shareholders' interests are well served. PepsiCo's inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, PepsiCo's outside directors are responsible for providing unbiased perspectives on the board's policies.