Correlation Between PepsiCo and Rose Hill
Can any of the company-specific risk be diversified away by investing in both PepsiCo and Rose Hill 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 PepsiCo and Rose Hill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PepsiCo and Rose Hill Acquisition, you can compare the effects of market volatilities on PepsiCo and Rose Hill 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 PepsiCo with a short position of Rose Hill. Check out your portfolio center. Please also check ongoing floating volatility patterns of PepsiCo and Rose Hill.
Diversification Opportunities for PepsiCo and Rose Hill
Pay attention - limited upside
The 3 months correlation between PepsiCo and Rose is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PepsiCo and Rose Hill Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rose Hill Acquisition and PepsiCo 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 PepsiCo are associated (or correlated) with Rose Hill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rose Hill Acquisition has no effect on the direction of PepsiCo i.e., PepsiCo and Rose Hill go up and down completely randomly.
Pair Corralation between PepsiCo and Rose Hill
If you would invest (100.00) in Rose Hill Acquisition on August 30, 2024 and sell it today you would earn a total of 100.00 from holding Rose Hill Acquisition or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
PepsiCo vs. Rose Hill Acquisition
Performance |
| Timeline |
| PepsiCo |
| Rose Hill Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PepsiCo and Rose Hill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PepsiCo and Rose Hill
The main advantage of trading using opposite PepsiCo and Rose Hill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PepsiCo position performs unexpectedly, Rose Hill 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 Rose Hill will offset losses from the drop in Rose Hill's long position.| PepsiCo vs. Coca Cola Consolidated | PepsiCo vs. Monster Beverage Corp | PepsiCo vs. Celsius Holdings | PepsiCo vs. Keurig Dr Pepper |
| Rose Hill vs. Diageo PLC ADR | Rose Hill vs. PepsiCo | Rose Hill vs. China Tontine Wines | Rose Hill vs. National Beverage Corp |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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