BF.B vs PEP: Correlation
Measured on weekly returns over the past three years, Brown–Forman (BF.B) and PepsiCo (PEP) carry a correlation of 0.35, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BF.B and PEP?
Over the past 3 years, BF.B and PEP moved with a correlation of 0.35, which is moderate. The relationship has been stable: the 1-year correlation (0.33) sits close to the 3-year figure. Over 5 years the correlation is 0.40, and the annualized covariance of weekly returns is 224.5 %².
By 3-year correlation, PEP places #19 of the 36 assets tracked against BF.B. On 12-month performance PEP holds a 5.8-point edge, -7.4% against -1.6%. On a rolling one-year basis the correlation drifted between 0.20 and 0.52, a moderate band. One caveat on sizing: BF.B is 1.8 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
BF.B vs PEP: side by side
| BF.B (Brown–Forman) | PEP (PepsiCo) | |
|---|---|---|
| 1-year return | -7.4% | -1.6% |
| 5-year return | -56.8% | +4.9% |
| Volatility (ann.) | 34.0% | 19.1% |
| Beta vs S&P 500 | 0.51 | 0.13 |
| Max drawdown (3Y) | -64.8% | -27.5% |
| Market cap | $12.5B | $190.9B |
| P/E (trailing) | 18.3 | 18.6 |
| Dividend yield | 3.26% | 4.04% |
| Sector / category | Consumer Staples | Consumer Staples |
Year-by-year returns
| Year | BF.B | PEP |
|---|---|---|
| 2022 | -8.9% | +6.8% |
| 2023 | -11.9% | -3.3% |
| 2024 | -32.2% | -7.6% |
| 2025 | -29.3% | -1.8% |
| 2026 | +6.6% | -0.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BF.B and PEP good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.35 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between BF.B and PEP?
The BF.B/PEP correlation stands at 0.35 on a 3-year window (1 year: 0.33, 5 years: 0.40), computed from weekly returns as of 2026-08-27.
Is PEP a good diversifier for BF.B?
Yes, to a useful degree: a correlation of 0.35 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.35 mean?
A reading of 0.35 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/bf-b-vs-pep.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/bf-b-vs-pep/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: BF.B correlations · PEP correlations
