ADM vs PEP: Correlation
Archer Daniels Midland (ADM) and PepsiCo (PEP) show a weak relationship: their 3-year correlation of weekly returns is 0.23.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ADM and PEP?
Across a 3-year window, the weekly returns of ADM and PEP correlate at 0.23, weak. The relationship has been stable: the 1-year correlation (0.15) sits close to the 3-year figure. Stretching to 5 years gives 0.22, with an annualized covariance of 131.5 %².
By 3-year correlation, PEP places #17 of the 33 assets tracked against ADM. The last year tells two different stories: ADM led by 31.4 percentage points, +29.8% for ADM against -1.6% for PEP. On a rolling one-year basis the correlation drifted between 0.06 and 0.49, a moderate band. Risk is not evenly split, since ADM carries 1.6 times the volatility of the other side.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
ADM vs PEP: side by side
| ADM (Archer Daniels Midland) | PEP (PepsiCo) | |
|---|---|---|
| 1-year return | +29.8% | -1.6% |
| 5-year return | +51.7% | +4.9% |
| Volatility (ann.) | 29.9% | 19.1% |
| Beta vs S&P 500 | 0.24 | 0.13 |
| Max drawdown (3Y) | -46.0% | -27.5% |
| Market cap | $38.1B | $190.9B |
| P/E (trailing) | 21.9 | 18.6 |
| Dividend yield | 2.57% | 4.04% |
| Sector / category | Consumer Staples | Consumer Staples |
Year-by-year returns
| Year | ADM | PEP |
|---|---|---|
| 2022 | +40.0% | +6.8% |
| 2023 | -20.4% | -3.3% |
| 2024 | -27.5% | -7.6% |
| 2025 | +18.2% | -1.8% |
| 2026 | +40.4% | -0.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ADM and PEP good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.23 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between ADM and PEP?
The ADM/PEP correlation stands at 0.23 on a 3-year window (1 year: 0.15, 5 years: 0.22), computed from weekly returns as of 2026-08-27.
Is PEP a good diversifier for ADM?
Yes, to a useful degree: a correlation of 0.23 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.23 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/adm-vs-pep.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/adm-vs-pep/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ADM correlations · PEP correlations
