HRL vs KDP: Correlation
Hormel Foods (HRL) and Keurig Dr Pepper (KDP) show a moderate relationship: their 3-year correlation of weekly returns is 0.43.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HRL and KDP?
Across a 3-year window, the weekly returns of HRL and KDP correlate at 0.43, moderate. The past 12 months show a weaker link (0.31) than the 3-year average (0.43). Stretching to 5 years gives 0.45, with an annualized covariance of 264.0 %².
KDP is one of the assets that tracks HRL most closely: it ranks #3 out of the 35 assets we track against HRL. Their recent paths diverged sharply: over the last 12 months KDP outperformed by 33.7 percentage points (-22.8% for HRL against +10.9% for KDP). The rolling one-year correlation moved between 0.19 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.
HRL vs KDP: side by side
| HRL (Hormel Foods) | KDP (Keurig Dr Pepper) | |
|---|---|---|
| 1-year return | -22.8% | +10.9% |
| 5-year return | -44.3% | +3.1% |
| Volatility (ann.) | 26.1% | 23.6% |
| Beta vs S&P 500 | 0.07 | 0.14 |
| Max drawdown (3Y) | -44.5% | -31.0% |
| Market cap | – | $43.4B |
| P/E (trailing) | 28.0 | 32.5 |
| Dividend yield | 0.00% | 2.86% |
| Sector / category | Consumer Staples | Consumer Staples |
Year-by-year returns
| Year | HRL | KDP |
|---|---|---|
| 2022 | -4.7% | -1.2% |
| 2023 | -27.5% | -4.2% |
| 2024 | +1.2% | -1.1% |
| 2025 | -21.3% | -10.1% |
| 2026 | -6.7% | +16.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HRL and KDP good diversifiers for each other?
Reasonably. At 0.43, HRL and KDP keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between HRL and KDP?
The HRL/KDP correlation stands at 0.43 on a 3-year window (1 year: 0.31, 5 years: 0.45), computed from weekly returns as of 2026-08-27.
Is KDP a good diversifier for HRL?
Reasonably. At 0.43, HRL and KDP 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.
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Related comparisons
Hubs: HRL correlations · KDP correlations
