KDP vs PEP: Correlation
Keurig Dr Pepper (KDP) and PepsiCo (PEP) show a moderate relationship: their 3-year correlation of weekly returns is 0.40.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KDP and PEP?
Over the past 3 years, KDP and PEP moved with a correlation of 0.40, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.29 versus 0.40 over 3 years. Over 5 years the correlation is 0.46, and the annualized covariance of weekly returns is 182.3 %².
Among the 30 assets we track against KDP, PEP ranks #8 by 3-year correlation. Over the last 12 months KDP came out ahead by 12.5 percentage points (+10.9% against -1.6%). The rolling one-year correlation moved between 0.23 and 0.69 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.
KDP vs PEP: side by side
| KDP (Keurig Dr Pepper) | PEP (PepsiCo) | |
|---|---|---|
| 1-year return | +10.9% | -1.6% |
| 5-year return | +3.1% | +4.9% |
| Volatility (ann.) | 23.6% | 19.1% |
| Beta vs S&P 500 | 0.14 | 0.13 |
| Max drawdown (3Y) | -31.0% | -27.5% |
| Market cap | $43.4B | $190.9B |
| P/E (trailing) | 32.5 | 18.6 |
| Dividend yield | 2.86% | 4.04% |
| Sector / category | Consumer Staples | Consumer Staples |
Year-by-year returns
| Year | KDP | PEP |
|---|---|---|
| 2022 | -1.2% | +6.8% |
| 2023 | -4.2% | -3.3% |
| 2024 | -1.1% | -7.6% |
| 2025 | -10.1% | -1.8% |
| 2026 | +16.6% | -0.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KDP and PEP good diversifiers for each other?
A fair diversifier. At 0.40, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between KDP and PEP?
Using weekly returns as of 2026-08-27: 0.40 over 3 years, with 0.29 over the last year and 0.46 over 5 years.
Is PEP a good diversifier for KDP?
A fair diversifier. At 0.40, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.40 mean?
A reading of 0.40 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
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Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/kdp-vs-pep/)
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Related comparisons
Hubs: KDP correlations · PEP correlations
