HRL vs REED: Correlation
How closely do Hormel Foods (HRL) and Reed's, Inc. (REED) trade together? Their weekly returns over three years give a correlation of -0.23, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HRL and REED?
On 3 years of weekly data the HRL/REED correlation comes out at -0.23, negative, meaning they tend to move in opposite directions. Lately the two have drifted apart, with the 1-year correlation at -0.34 versus -0.23 over 3 years. The 5-year figure is -0.16, and annualized covariance runs at -630.6 %².
Among the 35 assets we track against HRL, REED sits near the bottom by co-movement, at rank #31. The last year tells two different stories: HRL led by 61.3 percentage points, -22.8% for HRL against -84.1% for REED. One caveat on sizing: REED is 4.0 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.
HRL vs REED: side by side
| HRL (Hormel Foods) | REED (Reed's, Inc.) | |
|---|---|---|
| 1-year return | -22.8% | -84.1% |
| 5-year return | -44.3% | -99.5% |
| Volatility (ann.) | 26.1% | 104.6% |
| Beta vs S&P 500 | 0.07 | -0.39 |
| Max drawdown (3Y) | -44.5% | -96.4% |
| Market cap | – | – |
| P/E (trailing) | 28.0 | – |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | Consumer Staples | US Listed |
Year-by-year returns
| Year | HRL | REED |
|---|---|---|
| 2022 | -4.7% | -80.6% |
| 2023 | -27.5% | -54.3% |
| 2024 | +1.2% | -60.6% |
| 2025 | -21.3% | -44.4% |
| 2026 | -6.7% | -53.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HRL and REED good diversifiers for each other?
Yes: at -0.23, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between HRL and REED?
As of 2026-08-27, the correlation of weekly returns between HRL and REED is -0.23 over 3 years, -0.34 over 1 year and -0.16 over 5 years.
Is REED a good diversifier for HRL?
Yes: at -0.23, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.23 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/hrl-vs-reed.json
Markdown for the live badge, attribution link included:
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The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: HRL correlations · REED correlations
