CL vs MCD: Correlation
Measured on weekly returns over the past three years, Colgate-Palmolive (CL) and McDonald's (MCD) carry a correlation of 0.49, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CL and MCD?
Across a 3-year window, the weekly returns of CL and MCD correlate at 0.49, moderate. Recent behaviour matches the longer record: 0.49 over 1 year against 0.49 over 3. Stretching to 5 years gives 0.52, with an annualized covariance of 147.4 %².
By 3-year correlation, MCD places #11 of the 40 assets tracked against CL. Correlation aside, the last 12 months split them widely, with CL ahead by 24.9 points (+10.4% versus -14.5%). The rolling one-year correlation moved between 0.38 and 0.66 over the past three years, a moderate range.
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.
CL vs MCD: side by side
| CL (Colgate-Palmolive) | MCD (McDonald's) | |
|---|---|---|
| 1-year return | +10.4% | -14.5% |
| 5-year return | +32.0% | +23.3% |
| Volatility (ann.) | 16.9% | 17.8% |
| Beta vs S&P 500 | 0.17 | 0.30 |
| Max drawdown (3Y) | -29.0% | -22.8% |
| Market cap | $72.5B | $184.0B |
| P/E (trailing) | 36.2 | 21.7 |
| Dividend yield | 2.27% | 2.75% |
| Sector / category | Consumer Staples | Consumer Discretionary |
Year-by-year returns
| Year | CL | MCD |
|---|---|---|
| 2022 | -5.4% | +0.5% |
| 2023 | +3.8% | +15.1% |
| 2024 | +16.6% | +0.1% |
| 2025 | -11.0% | +7.9% |
| 2026 | +17.2% | -13.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CL and MCD good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.49 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between CL and MCD?
The CL/MCD correlation stands at 0.49 on a 3-year window (1 year: 0.49, 5 years: 0.52), computed from weekly returns as of 2026-08-27.
Is MCD a good diversifier for CL?
Yes, to a useful degree: a correlation of 0.49 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.49 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/cl-vs-mcd.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/cl-vs-mcd/)
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Related comparisons
Hubs: CL correlations · MCD correlations
