ARCO vs STNE: Correlation
Measured on weekly returns over the past three years, Arcos Dorados Holdings Inc. Class A Shares (ARCO) and StoneCo Ltd. - Class A Common Share (STNE) carry a correlation of 0.58, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARCO and STNE?
Over the past 3 years, ARCO and STNE moved with a correlation of 0.58, which is moderate. The link has tightened recently: the 1-year correlation (0.68) runs above the 3-year figure (0.58). Over 5 years the correlation is 0.48, and the annualized covariance of weekly returns is 860.0 %².
Few assets follow ARCO as closely as STNE, which ranks #1 of 10 tracked partners. Their recent paths diverged sharply: over the last 12 months ARCO outperformed by 45.3 percentage points (+18.0% for ARCO against -27.3% for STNE). Note the risk asymmetry: STNE runs 1.6 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.
ARCO vs STNE: side by side
| ARCO (Arcos Dorados Holdings Inc. Class A Shares) | STNE (StoneCo Ltd. - Class A Common Share) | |
|---|---|---|
| 1-year return | +18.0% | -27.3% |
| 5-year return | +59.4% | -76.6% |
| Volatility (ann.) | 30.6% | 48.1% |
| Beta vs S&P 500 | 0.59 | 1.41 |
| Max drawdown (3Y) | -47.9% | -57.6% |
| Market cap | $1.7B | $2.2B |
| P/E (trailing) | 6.5 | 3.7 |
| Dividend yield | 3.50% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ARCO | STNE |
|---|---|---|
| 2022 | +46.3% | -44.0% |
| 2023 | +54.9% | +91.0% |
| 2024 | -41.0% | -55.8% |
| 2025 | +4.1% | +85.6% |
| 2026 | +10.0% | -21.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARCO and STNE good diversifiers for each other?
Only partially. A correlation of 0.58 means ARCO and STNE share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between ARCO and STNE?
As of 2026-08-27, the correlation of weekly returns between ARCO and STNE is 0.58 over 3 years, 0.68 over 1 year and 0.48 over 5 years.
Is STNE a good diversifier for ARCO?
Only partially. A correlation of 0.58 means ARCO and STNE share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.58 mean?
A reading of 0.58 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/arco-vs-stne.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/arco-vs-stne/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ARCO correlations · STNE correlations
