BTI vs PM: Correlation
How closely do British American Tobacco Industries, p.l.c. (BTI) and Philip Morris International (PM) trade together? Their weekly returns over three years give a correlation of 0.56, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BTI and PM?
Over the past 3 years, BTI and PM moved with a correlation of 0.56, which is moderate. The link has tightened recently: the 1-year correlation (0.69) runs above the 3-year figure (0.56). Over 5 years the correlation is 0.58, and the annualized covariance of weekly returns is 289.6 %².
Few assets follow BTI as closely as PM, which ranks #1 of 21 tracked partners. The last year tells two different stories: PM led by 15.4 percentage points, +4.8% for BTI against +20.2% for PM.
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.
BTI vs PM: side by side
| BTI (British American Tobacco Industries, p.l.c.) | PM (Philip Morris International) | |
|---|---|---|
| 1-year return | +4.8% | +20.2% |
| 5-year return | +119.4% | +133.5% |
| Volatility (ann.) | 22.5% | 23.1% |
| Beta vs S&P 500 | 0.06 | -0.01 |
| Max drawdown (3Y) | -15.3% | -20.6% |
| Market cap | $121.2B | $296.9B |
| P/E (trailing) | 14.5 | 26.7 |
| Dividend yield | 4.27% | 3.03% |
| Sector / category | US Listed | Consumer Staples |
Year-by-year returns
| Year | BTI | PM |
|---|---|---|
| 2022 | +15.1% | +12.3% |
| 2023 | -20.1% | -1.9% |
| 2024 | +35.4% | +34.3% |
| 2025 | +65.8% | +38.0% |
| 2026 | +2.2% | +20.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BTI and PM good diversifiers for each other?
Only partially. A correlation of 0.56 means BTI and PM 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 BTI and PM?
As of 2026-08-27, the correlation of weekly returns between BTI and PM is 0.56 over 3 years, 0.69 over 1 year and 0.58 over 5 years.
Is PM a good diversifier for BTI?
Only partially. A correlation of 0.56 means BTI and PM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.56 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/bti-vs-pm.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/bti-vs-pm/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: BTI correlations · PM correlations
