HD vs MCD: Correlation
How closely do Home Depot (The) (HD) and McDonald's (MCD) trade together? Their weekly returns over three years give a correlation of 0.43, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HD and MCD?
Across a 3-year window, the weekly returns of HD and MCD correlate at 0.43, moderate. Little has changed lately, as the 1-year reading of 0.45 lands near the 3-year figure. Stretching to 5 years gives 0.39, with an annualized covariance of 182.7 %².
Among the 54 assets we track against HD, MCD ranks #36 by 3-year correlation. Their 12-month results are close: -17.4% for HD against -14.5% for MCD. Across three years, the rolling one-year figure varied moderately, from 0.26 to 0.51.
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.
HD vs MCD: side by side
| HD (Home Depot (The)) | MCD (McDonald's) | |
|---|---|---|
| 1-year return | -17.4% | -14.5% |
| 5-year return | +13.8% | +23.3% |
| Volatility (ann.) | 23.6% | 17.8% |
| Beta vs S&P 500 | 0.87 | 0.30 |
| Max drawdown (3Y) | -28.8% | -22.8% |
| Market cap | $327.9B | $184.0B |
| P/E (trailing) | 23.4 | 21.7 |
| Dividend yield | 1.38% | 2.75% |
| Sector / category | Consumer Discretionary | Consumer Discretionary |
Year-by-year returns
| Year | HD | MCD |
|---|---|---|
| 2022 | -22.0% | +0.5% |
| 2023 | +12.8% | +15.1% |
| 2024 | +15.0% | +0.1% |
| 2025 | -9.3% | +7.9% |
| 2026 | -3.1% | -13.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HD and MCD good diversifiers for each other?
Reasonably. At 0.43, HD and MCD keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between HD and MCD?
The HD/MCD correlation stands at 0.43 on a 3-year window (1 year: 0.45, 5 years: 0.39), computed from weekly returns as of 2026-08-27.
Is MCD a good diversifier for HD?
Reasonably. At 0.43, HD and MCD keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.43 mean?
On the −1 to +1 scale, 0.43 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/hd-vs-mcd.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/hd-vs-mcd/)
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Related comparisons
Hubs: HD correlations · MCD correlations
