Correlation Between PepsiCo and EXELON
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By analyzing existing cross correlation between PepsiCo and EXELON GENERATION LLC, you can compare the effects of market volatilities on PepsiCo and EXELON 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 EXELON. Check out your portfolio center. Please also check ongoing floating volatility patterns of PepsiCo and EXELON.
Diversification Opportunities for PepsiCo and EXELON
Very weak diversification
The 3 months correlation between PepsiCo and EXELON is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding PepsiCo and EXELON GENERATION LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXELON GENERATION LLC 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 EXELON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXELON GENERATION LLC has no effect on the direction of PepsiCo i.e., PepsiCo and EXELON go up and down completely randomly.
Pair Corralation between PepsiCo and EXELON
Considering the 90-day investment horizon PepsiCo is expected to under-perform the EXELON. But the stock apears to be less risky and, when comparing its historical volatility, PepsiCo is 1.32 times less risky than EXELON. The stock trades about -0.13 of its potential returns per unit of risk. The EXELON GENERATION LLC is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 9,870 in EXELON GENERATION LLC on September 12, 2024 and sell it today you would lose (169.00) from holding EXELON GENERATION LLC or give up 1.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
PepsiCo vs. EXELON GENERATION LLC
Performance |
| Timeline |
| PepsiCo |
| EXELON GENERATION LLC |
PepsiCo and EXELON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PepsiCo and EXELON
The main advantage of trading using opposite PepsiCo and EXELON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PepsiCo position performs unexpectedly, EXELON 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 EXELON will offset losses from the drop in EXELON's long position.| PepsiCo vs. Coca Cola Consolidated | PepsiCo vs. Monster Beverage Corp | PepsiCo vs. Celsius Holdings | PepsiCo vs. Keurig Dr Pepper |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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