PepsiCo (Germany) Alpha and Beta Analysis
| PEP Stock | EUR 154.42 2.08 1.37% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as PepsiCo. It also helps investors analyze the systematic and unsystematic risks associated with investing in PepsiCo over a specified time horizon. Remember, high PepsiCo's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to PepsiCo's market risk premium analysis include:
Beta 0.23 | Alpha (0.04) | Risk 1.13 | Sharpe Ratio (0.01) | Expected Return (0.01) |
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
PepsiCo |
PepsiCo Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. PepsiCo market risk premium is the additional return an investor will receive from holding PepsiCo long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in PepsiCo. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate PepsiCo's performance over market.| α | -0.03 | β | 0.23 |
PepsiCo expected buy-and-hold returns
Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of PepsiCo's Buy-and-hold return. Our buy-and-hold chart shows how PepsiCo performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.PepsiCo Market Price Analysis
Market price analysis indicators help investors to evaluate how PepsiCo stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading PepsiCo shares will generate the highest return on investment. By understating and applying PepsiCo stock market price indicators, traders can identify PepsiCo position entry and exit signals to maximize returns.
PepsiCo Return and Market Media
The median price of PepsiCo for the period between Tue, Aug 27, 2024 and Mon, Nov 25, 2024 is 155.46 with a coefficient of variation of 2.28. The daily time series for the period is distributed with a sample standard deviation of 3.55, arithmetic mean of 156.0, and mean deviation of 3.05. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
| Timeline |
About PepsiCo Beta and Alpha
For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including PepsiCo or other stocks. Alpha measures the amount that position in PepsiCo has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards PepsiCo in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, PepsiCo's short interest history, or implied volatility extrapolated from PepsiCo options trading.
Build Portfolio with PepsiCo
Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.Build Diversified Portfolios
Align your risk with return expectations
Additional Information and Resources on Investing in PepsiCo Stock
When determining whether PepsiCo is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if PepsiCo Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Pepsico Stock. Highlighted below are key reports to facilitate an investment decision about Pepsico Stock:Check out PepsiCo Backtesting, PepsiCo Valuation, PepsiCo Correlation, PepsiCo Hype Analysis, PepsiCo Volatility, PepsiCo History and analyze PepsiCo Performance. For more detail on how to invest in PepsiCo Stock please use our How to Invest in PepsiCo guide.You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
PepsiCo technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.