APP vs PEP: Correlation
Measured on weekly returns over the past three years, AppLovin (APP) and PepsiCo (PEP) carry a correlation of -0.20, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are APP and PEP?
On 3 years of weekly data the APP/PEP correlation comes out at -0.20, negative, meaning they tend to move in opposite directions. Lately the two have drifted apart, with the 1-year correlation at -0.40 versus -0.20 over 3 years. The 5-year figure is -0.04, and annualized covariance runs at -315.0 %².
By 3-year correlation, PEP places #38 of the 44 assets tracked against APP. Their recent paths diverged sharply: over the last 12 months PEP outperformed by 30.9 percentage points (-32.5% for APP against -1.6% for PEP). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.40 to 0.28. Note the risk asymmetry: APP runs 4.4 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
APP vs PEP: side by side
| APP (AppLovin) | PEP (PepsiCo) | |
|---|---|---|
| 1-year return | -32.5% | -1.6% |
| 5-year return | +326.5% | +4.9% |
| Volatility (ann.) | 84.3% | 19.1% |
| Beta vs S&P 500 | 3.10 | 0.13 |
| Max drawdown (3Y) | -59.3% | -27.5% |
| Market cap | $105.0B | $190.9B |
| P/E (trailing) | 23.7 | 18.6 |
| Dividend yield | 0.00% | 4.04% |
| Sector / category | Communication Services | Consumer Staples |
Year-by-year returns
| Year | APP | PEP |
|---|---|---|
| 2022 | -88.8% | +6.8% |
| 2023 | +278.4% | -3.3% |
| 2024 | +712.6% | -7.6% |
| 2025 | +108.1% | -1.8% |
| 2026 | -53.6% | -0.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are APP and PEP good diversifiers for each other?
Yes. With a correlation of -0.20, APP and PEP have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between APP and PEP?
Using weekly returns as of 2026-08-27: -0.20 over 3 years, with -0.40 over the last year and -0.04 over 5 years.
Is PEP a good diversifier for APP?
Yes. With a correlation of -0.20, APP and PEP have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.20 mean?
A reading of -0.20 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/app-vs-pep.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/app-vs-pep/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: APP correlations · PEP correlations
