JNJ vs PEP: Correlation
Johnson & Johnson (JNJ) and PepsiCo (PEP) show a moderate relationship: their 3-year correlation of weekly returns is 0.53.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are JNJ and PEP?
Over the past 3 years, JNJ and PEP moved with a correlation of 0.53, which is moderate. Recent behaviour matches the longer record: 0.55 over 1 year against 0.53 over 3. Over 5 years the correlation is 0.52, and the annualized covariance of weekly returns is 188.2 %².
Among the 48 assets we track against JNJ, PEP ranks #12 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months JNJ outperformed by 55.3 percentage points (+53.7% for JNJ against -1.6% for PEP). The rolling one-year correlation moved between 0.32 and 0.72 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.
JNJ vs PEP: side by side
| JNJ (Johnson & Johnson) | PEP (PepsiCo) | |
|---|---|---|
| 1-year return | +53.7% | -1.6% |
| 5-year return | +76.0% | +4.9% |
| Volatility (ann.) | 18.5% | 19.1% |
| Beta vs S&P 500 | 0.05 | 0.13 |
| Max drawdown (3Y) | -14.4% | -27.5% |
| Market cap | $640.5B | $190.9B |
| P/E (trailing) | 30.9 | 18.6 |
| Dividend yield | 1.94% | 4.04% |
| Sector / category | Health Care | Consumer Staples |
Year-by-year returns
| Year | JNJ | PEP |
|---|---|---|
| 2022 | +6.0% | +6.8% |
| 2023 | -8.6% | -3.3% |
| 2024 | -4.8% | -7.6% |
| 2025 | +47.5% | -1.8% |
| 2026 | +30.5% | -0.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are JNJ and PEP good diversifiers for each other?
Only partially. A correlation of 0.53 means JNJ and PEP share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between JNJ and PEP?
The JNJ/PEP correlation stands at 0.53 on a 3-year window (1 year: 0.55, 5 years: 0.52), computed from weekly returns as of 2026-08-27.
Is PEP a good diversifier for JNJ?
Only partially. A correlation of 0.53 means JNJ and PEP share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.53 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/jnj-vs-pep.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/jnj-vs-pep/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: JNJ correlations · PEP correlations
