HSY vs PEP: Correlation
Measured on weekly returns over the past three years, Hershey Company (The) (HSY) and PepsiCo (PEP) carry a correlation of 0.48, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HSY and PEP?
Over the past 3 years, HSY and PEP moved with a correlation of 0.48, which is moderate. Recent behaviour matches the longer record: 0.57 over 1 year against 0.48 over 3. Over 5 years the correlation is 0.53, and the annualized covariance of weekly returns is 233.6 %².
Few assets follow HSY as closely as PEP, which ranks #2 of 30 tracked partners. Neither side won the trailing year by much: +2.8% against -1.6%. Across three years, the rolling one-year figure varied moderately, from 0.31 to 0.64.
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.
HSY vs PEP: side by side
| HSY (Hershey Company (The)) | PEP (PepsiCo) | |
|---|---|---|
| 1-year return | +2.8% | -1.6% |
| 5-year return | +16.5% | +4.9% |
| Volatility (ann.) | 25.6% | 19.1% |
| Beta vs S&P 500 | 0.03 | 0.13 |
| Max drawdown (3Y) | -31.2% | -27.5% |
| Market cap | $36.4B | $190.9B |
| P/E (trailing) | 25.3 | 18.6 |
| Dividend yield | 3.05% | 4.04% |
| Sector / category | Consumer Staples | Consumer Staples |
Year-by-year returns
| Year | HSY | PEP |
|---|---|---|
| 2022 | +21.9% | +6.8% |
| 2023 | -17.9% | -3.3% |
| 2024 | -6.5% | -7.6% |
| 2025 | +11.0% | -1.8% |
| 2026 | +1.9% | -0.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HSY and PEP good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.48 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between HSY and PEP?
Using weekly returns as of 2026-08-27: 0.48 over 3 years, with 0.57 over the last year and 0.53 over 5 years.
Is PEP a good diversifier for HSY?
Yes, to a useful degree: a correlation of 0.48 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.48 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.
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Related comparisons
Hubs: HSY correlations · PEP correlations
