CL vs PEP: Correlation
Colgate-Palmolive (CL) and PepsiCo (PEP) show a moderate relationship: their 3-year correlation of weekly returns is 0.52.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CL and PEP?
Over the past 3 years, CL and PEP moved with a correlation of 0.52, which is moderate. Recent behaviour matches the longer record: 0.48 over 1 year against 0.52 over 3. Over 5 years the correlation is 0.57, and the annualized covariance of weekly returns is 167.2 %².
By 3-year correlation, PEP places #10 of the 40 assets tracked against CL. The trailing year gives CL the advantage: +10.4% versus -1.6%, a 12.0-point spread. The rolling one-year correlation moved between 0.34 and 0.73 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 PEP: side by side
| CL (Colgate-Palmolive) | PEP (PepsiCo) | |
|---|---|---|
| 1-year return | +10.4% | -1.6% |
| 5-year return | +32.0% | +4.9% |
| Volatility (ann.) | 16.9% | 19.1% |
| Beta vs S&P 500 | 0.17 | 0.13 |
| Max drawdown (3Y) | -29.0% | -27.5% |
| Market cap | $72.5B | $190.9B |
| P/E (trailing) | 36.2 | 18.6 |
| Dividend yield | 2.27% | 4.04% |
| Sector / category | Consumer Staples | Consumer Staples |
Year-by-year returns
| Year | CL | PEP |
|---|---|---|
| 2022 | -5.4% | +6.8% |
| 2023 | +3.8% | -3.3% |
| 2024 | +16.6% | -7.6% |
| 2025 | -11.0% | -1.8% |
| 2026 | +17.2% | -0.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CL and PEP good diversifiers for each other?
Somewhat, no more. With 0.52 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between CL and PEP?
Using weekly returns as of 2026-08-27: 0.52 over 3 years, with 0.48 over the last year and 0.57 over 5 years.
Is PEP a good diversifier for CL?
Somewhat, no more. With 0.52 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.52 mean?
On the −1 to +1 scale, 0.52 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/cl-vs-pep.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/cl-vs-pep/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: CL correlations · PEP correlations
