ERIE vs REED: Correlation
Measured on weekly returns over the past three years, Erie Indemnity (ERIE) and Reed's, Inc. (REED) carry a correlation of -0.18, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ERIE and REED?
On 3 years of weekly data the ERIE/REED correlation comes out at -0.18, negative, meaning they tend to move in opposite directions. Recent behaviour matches the longer record: -0.26 over 1 year against -0.18 over 3. The 5-year figure is -0.05, and annualized covariance runs at -563.8 %².
Among the 33 assets we track against ERIE, REED ranks #27 by 3-year correlation. Correlation aside, the last 12 months split them widely, with ERIE ahead by 59.6 points (-24.5% versus -84.1%). One caveat on sizing: REED is 3.5 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.
ERIE vs REED: side by side
| ERIE (Erie Indemnity) | REED (Reed's, Inc.) | |
|---|---|---|
| 1-year return | -24.5% | -84.1% |
| 5-year return | +61.3% | -99.5% |
| Volatility (ann.) | 30.3% | 104.6% |
| Beta vs S&P 500 | 0.37 | -0.39 |
| Max drawdown (3Y) | -60.9% | -96.4% |
| Market cap | $13.6B | – |
| P/E (trailing) | 23.4 | – |
| Dividend yield | 2.24% | 0.00% |
| Sector / category | Financials | US Listed |
Year-by-year returns
| Year | ERIE | REED |
|---|---|---|
| 2022 | +32.0% | -80.6% |
| 2023 | +37.3% | -54.3% |
| 2024 | +24.7% | -60.6% |
| 2025 | -29.4% | -44.4% |
| 2026 | -8.0% | -53.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ERIE and REED good diversifiers for each other?
Yes: at -0.18, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between ERIE and REED?
The ERIE/REED correlation stands at -0.18 on a 3-year window (1 year: -0.26, 5 years: -0.05), computed from weekly returns as of 2026-08-27.
Is REED a good diversifier for ERIE?
Yes: at -0.18, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.18 mean?
On the −1 to +1 scale, -0.18 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/erie-vs-reed.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/erie-vs-reed/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ERIE correlations · REED correlations
