PepsiCo Correlations

PEP Stock

USD 149.57 1.77 1.17%

The current 90-days correlation between PepsiCo and The Coca Cola is 0.68 (i.e., Poor diversification). The correlation of PepsiCo is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

PepsiCo Correlation With Market

Significant diversification

The correlation between PepsiCo and DJI is 0.07 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding PepsiCo and DJI in the same portfolio, assuming nothing else is changed.

Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in PepsiCo. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income.

To learn how to invest in PepsiCo Stock, please use our How to Invest in PepsiCo guide.

Moving together with PepsiCo Stock

0.72	KDP	Keurig Dr Pepper	Pair Corr
0.65	MNST	Monster Beverage Corp	Pair Corr
0.61	CELH	Celsius Holdings Buyout Trend	Pair Corr
0.89	CL	Colgate Palmolive	Pair Corr
0.64	DG	Dollar General	Pair Corr
0.66	PG	Procter Gamble	Pair Corr
0.69	TR	Tootsie Roll Industries	Pair Corr
0.76	DOLE	Dole PLC	Pair Corr

Moving against PepsiCo Stock

0.53	UG	United Guardian Earnings Call This Week	Pair Corr
0.46	ZVIA	Zevia Pbc	Pair Corr
0.37	COKE	Coca Cola Consolidated	Pair Corr
0.47	BOF	BranchOut Food Common	Pair Corr
0.38	ACI	Albertsons Companies	Pair Corr
0.38	DAR	Darling Ingredients	Pair Corr
0.35	EDBL	Edible Garden AG	Pair Corr

Related Correlations Analysis

	COKE	MNST	CELH	KDP	COCO	KOF	KO	CCEP	PRMW
COKE		-0.29	-0.5	0.16	0.3	0.38	0.55	0.69	0.0	COKE
MNST	-0.29		0.56	0.69	-0.58	0.64	0.49	0.36	0.0	MNST
CELH	-0.5	0.56		0.4	-0.35	0.1	-0.13	-0.14	0.0	CELH
KDP	0.16	0.69	0.4		-0.19	0.85	0.71	0.72	0.0	KDP
COCO	0.3	-0.58	-0.35	-0.19		-0.17	-0.1	0.05	0.0	COCO
KOF	0.38	0.64	0.1	0.85	-0.17		0.92	0.89	0.0	KOF
KO	0.55	0.49	-0.13	0.71	-0.1	0.92		0.93	0.0	KO
CCEP	0.69	0.36	-0.14	0.72	0.05	0.89	0.93		0.0	CCEP
PRMW	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0		PRMW
	COKE	MNST	CELH	KDP	COCO	KOF	KO	CCEP	PRMW

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

CCEP	+ 0.93	KO
KO	+ 0.92	KOF
CCEP	+ 0.89	KOF
KOF	+ 0.85	KDP
CCEP	+ 0.72	KDP
KO	+ 0.71	KDP

High negative correlations

COCO	- 0.58	MNST
CELH	- 0.5	COKE
COCO	- 0.35	CELH
MNST	- 0.29	COKE
COCO	- 0.19	KDP
KOF	- 0.17	COCO

Risk-Adjusted Indicators

There is a big difference between PepsiCo Stock performing well and PepsiCo Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze PepsiCo's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
COKE	1.61	0.15	0.07	0.05	2.30	(1.57)	2.83	(3.42)	10.97
MNST	1.10	0.10	0.15	0.38	1.20	(1.22)	2.80	(1.87)	6.76
CELH	3.39	0.06	0.04	(3.57)	3.94	(4.07)	7.75	(5.49)	42.08
KDP	1.12	0.06	0.12	0.45	1.31	(1.25)	2.40	(2.38)	6.58
COCO	1.57	0.03	0.00	(0.07)	0.00	0.00	4.21	(4.42)	19.52
KOF	1.03	0.13	0.20	19.82	1.09	(1.27)	2.34	(2.10)	7.02
KO	0.92	0.17	0.26	1.33	0.84	(1.02)	1.91	(1.53)	7.65
CCEP	0.90	0.14	0.17	0.37	1.06	(0.91)	2.09	(1.81)	5.08
PRMW	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

PepsiCo Corporate Executives

Elected by the shareholders, the PepsiCo's board of directors comprises two types of representatives: PepsiCo inside directors who are chosen from within the company, and outside directors, selected externally and held independent of PepsiCo. The board's role is to monitor PepsiCo's management team and ensure that shareholders' interests are well served. PepsiCo's inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, PepsiCo's outside directors are responsible for providing unbiased perspectives on the board's policies.

	James Caulfield	Executive CFO	Profile
	Gregg Roden	Executive COO	Profile

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