Correlation Between BATSLN and PepsiCo
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By analyzing existing cross correlation between BATSLN 475 01 NOV 42 and PepsiCo, you can compare the effects of market volatilities on BATSLN 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 BATSLN with a short position of PepsiCo. Check out your portfolio center. Please also check ongoing floating volatility patterns of BATSLN and PepsiCo.
Diversification Opportunities for BATSLN and PepsiCo
Average diversification
The 3 months correlation between BATSLN and PepsiCo is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding BATSLN 475 01 NOV 42 and PepsiCo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PepsiCo and BATSLN 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 BATSLN 475 01 NOV 42 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 has no effect on the direction of BATSLN i.e., BATSLN and PepsiCo go up and down completely randomly.
Pair Corralation between BATSLN and PepsiCo
Assuming the 90 days trading horizon BATSLN 475 01 NOV 42 is expected to generate 2.83 times more return on investment than PepsiCo. However, BATSLN is 2.83 times more volatile than PepsiCo. It trades about 0.01 of its potential returns per unit of risk. PepsiCo is currently generating about 0.0 per unit of risk. If you would invest 7,923 in BATSLN 475 01 NOV 42 on September 4, 2024 and sell it today you would lose (55.00) from holding BATSLN 475 01 NOV 42 or give up 0.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 49.8% |
| Values | Daily Returns |
BATSLN 475 01 NOV 42 vs. PepsiCo
Performance |
| Timeline |
| BATSLN 475 01 |
| PepsiCo |
BATSLN and PepsiCo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BATSLN and PepsiCo
The main advantage of trading using opposite BATSLN and PepsiCo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BATSLN 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.| BATSLN vs. TFI International | BATSLN vs. Saia Inc | BATSLN vs. BJs Restaurants | BATSLN vs. Park Hotels Resorts |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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