Correlation Between KVH Industries and PEPSICO
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By analyzing existing cross correlation between KVH Industries and PEPSICO INC, you can compare the effects of market volatilities on KVH Industries and PEPSICO 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 KVH Industries with a short position of PEPSICO. Check out your portfolio center. Please also check ongoing floating volatility patterns of KVH Industries and PEPSICO.
Diversification Opportunities for KVH Industries and PEPSICO
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between KVH and PEPSICO is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding KVH Industries and PEPSICO INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PEPSICO INC and KVH Industries 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 KVH Industries are associated (or correlated) with PEPSICO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PEPSICO INC has no effect on the direction of KVH Industries i.e., KVH Industries and PEPSICO go up and down completely randomly.
Pair Corralation between KVH Industries and PEPSICO
Given the investment horizon of 90 days KVH Industries is expected to generate 1.53 times less return on investment than PEPSICO. But when comparing it to its historical volatility, KVH Industries is 1.39 times less risky than PEPSICO. It trades about 0.14 of its potential returns per unit of risk. PEPSICO INC is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 7,713 in PEPSICO INC on September 3, 2024 and sell it today you would earn a total of 781.00 from holding PEPSICO INC or generate 10.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 50.0% |
| Values | Daily Returns |
KVH Industries vs. PEPSICO INC
Performance |
| Timeline |
| KVH Industries |
| PEPSICO INC |
KVH Industries and PEPSICO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KVH Industries and PEPSICO
The main advantage of trading using opposite KVH Industries and PEPSICO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KVH Industries position performs unexpectedly, PEPSICO 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 PEPSICO will offset losses from the drop in PEPSICO's long position.| KVH Industries vs. Telesat Corp | KVH Industries vs. Comtech Telecommunications Corp | KVH Industries vs. Knowles Cor | KVH Industries vs. Ituran Location and |
| PEPSICO vs. The Travelers Companies | PEPSICO vs. GE Aerospace | PEPSICO vs. Walmart | PEPSICO vs. Pfizer Inc |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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