KHC vs PEP: Correlation
Measured on weekly returns over the past three years, Kraft Heinz (KHC) and PepsiCo (PEP) carry a correlation of 0.57, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KHC and PEP?
Across a 3-year window, the weekly returns of KHC and PEP correlate at 0.57, moderate. The past 12 months show a weaker link (0.38) than the 3-year average (0.57). Stretching to 5 years gives 0.56, with an annualized covariance of 237.7 %².
Among the 36 assets we track against KHC, PEP ranks #5 by 3-year correlation. Neither side won the trailing year by much: -3.9% against -1.6%. The rolling one-year correlation moved between 0.36 and 0.81 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.
KHC vs PEP: side by side
| KHC (Kraft Heinz) | PEP (PepsiCo) | |
|---|---|---|
| 1-year return | -3.9% | -1.6% |
| 5-year return | -10.9% | +4.9% |
| Volatility (ann.) | 21.7% | 19.1% |
| Beta vs S&P 500 | 0.12 | 0.13 |
| Max drawdown (3Y) | -38.7% | -27.5% |
| Market cap | $29.8B | $190.9B |
| P/E (trailing) | – | 18.6 |
| Dividend yield | 6.45% | 4.04% |
| Sector / category | Consumer Staples | Consumer Staples |
Year-by-year returns
| Year | KHC | PEP |
|---|---|---|
| 2022 | +18.2% | +6.8% |
| 2023 | -5.0% | -3.3% |
| 2024 | -13.0% | -7.6% |
| 2025 | -16.3% | -1.8% |
| 2026 | +7.3% | -0.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KHC and PEP good diversifiers for each other?
Only partially. A correlation of 0.57 means KHC 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 KHC and PEP?
As of 2026-08-27, the correlation of weekly returns between KHC and PEP is 0.57 over 3 years, 0.38 over 1 year and 0.56 over 5 years.
Is PEP a good diversifier for KHC?
Only partially. A correlation of 0.57 means KHC 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 0.57 mean?
On the −1 to +1 scale, 0.57 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/khc-vs-pep.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/khc-vs-pep/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: KHC correlations · PEP correlations
