Correlation Between PepsiCo and Bitcoin Depot
Can any of the company-specific risk be diversified away by investing in both PepsiCo and Bitcoin Depot at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining PepsiCo and Bitcoin Depot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PepsiCo and Bitcoin Depot, you can compare the effects of market volatilities on PepsiCo and Bitcoin Depot 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 Bitcoin Depot. Check out your portfolio center. Please also check ongoing floating volatility patterns of PepsiCo and Bitcoin Depot.
Diversification Opportunities for PepsiCo and Bitcoin Depot
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between PepsiCo and Bitcoin is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding PepsiCo and Bitcoin Depot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin Depot 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 Bitcoin Depot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin Depot has no effect on the direction of PepsiCo i.e., PepsiCo and Bitcoin Depot go up and down completely randomly.
Pair Corralation between PepsiCo and Bitcoin Depot
Considering the 90-day investment horizon PepsiCo is expected to under-perform the Bitcoin Depot. But the stock apears to be less risky and, when comparing its historical volatility, PepsiCo is 2.65 times less risky than Bitcoin Depot. The stock trades about -0.01 of its potential returns per unit of risk. The Bitcoin Depot is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 161.00 in Bitcoin Depot on December 27, 2024 and sell it today you would lose (2.00) from holding Bitcoin Depot or give up 1.24% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.36% |
Values | Daily Returns |
PepsiCo vs. Bitcoin Depot
Performance |
Timeline |
PepsiCo |
Bitcoin Depot |
PepsiCo and Bitcoin Depot Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PepsiCo and Bitcoin Depot
The main advantage of trading using opposite PepsiCo and Bitcoin Depot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PepsiCo position performs unexpectedly, Bitcoin Depot 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 Bitcoin Depot will offset losses from the drop in Bitcoin Depot's long position.PepsiCo vs. Coca Cola Consolidated | PepsiCo vs. Monster Beverage Corp | PepsiCo vs. Celsius Holdings | PepsiCo vs. Keurig Dr Pepper |
Bitcoin Depot vs. MGIC Investment Corp | Bitcoin Depot vs. Copa Holdings SA | Bitcoin Depot vs. Ryanair Holdings PLC | Bitcoin Depot vs. Sun Country Airlines |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Transaction History View history of all your transactions and understand their impact on performance |