Correlation Between PepsiCo and KIMCO
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By analyzing existing cross correlation between PepsiCo and KIMCO RLTY P, you can compare the effects of market volatilities on PepsiCo and KIMCO 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 KIMCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of PepsiCo and KIMCO.
Diversification Opportunities for PepsiCo and KIMCO
Good diversification
The 3 months correlation between PepsiCo and KIMCO is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding PepsiCo and KIMCO RLTY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMCO RLTY P 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 KIMCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIMCO RLTY P has no effect on the direction of PepsiCo i.e., PepsiCo and KIMCO go up and down completely randomly.
Pair Corralation between PepsiCo and KIMCO
Considering the 90-day investment horizon PepsiCo is expected to under-perform the KIMCO. But the stock apears to be less risky and, when comparing its historical volatility, PepsiCo is 2.65 times less risky than KIMCO. The stock trades about -0.01 of its potential returns per unit of risk. The KIMCO RLTY P is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 8,116 in KIMCO RLTY P on September 13, 2024 and sell it today you would lose (271.00) from holding KIMCO RLTY P or give up 3.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 37.45% |
| Values | Daily Returns |
PepsiCo vs. KIMCO RLTY P
Performance |
| Timeline |
| PepsiCo |
| KIMCO RLTY P |
PepsiCo and KIMCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PepsiCo and KIMCO
The main advantage of trading using opposite PepsiCo and KIMCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PepsiCo position performs unexpectedly, KIMCO 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 KIMCO will offset losses from the drop in KIMCO's long position.| PepsiCo vs. Monster Beverage Corp | PepsiCo vs. Coca Cola Femsa SAB | PepsiCo vs. Keurig Dr Pepper | PepsiCo vs. Embotelladora Andina SA |
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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