KO vs PEP: Correlation
Coca-Cola Company (The) (KO) and PepsiCo (PEP) show a moderate relationship: their 3-year correlation of weekly returns is 0.54.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KO and PEP?
Across a 3-year window, the weekly returns of KO and PEP correlate at 0.54, moderate. Little has changed lately, as the 1-year reading of 0.57 lands near the 3-year figure. Stretching to 5 years gives 0.64, with an annualized covariance of 158.4 %².
Few assets follow KO as closely as PEP, which ranks #3 of 43 tracked partners. Their recent paths diverged sharply: over the last 12 months KO outperformed by 34.7 percentage points (+33.1% for KO against -1.6% for PEP). Across three years, the rolling one-year figure varied moderately, from 0.32 to 0.78.
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.
KO vs PEP: side by side
| KO (Coca-Cola Company (The)) | PEP (PepsiCo) | |
|---|---|---|
| 1-year return | +33.1% | -1.6% |
| 5-year return | +83.8% | +4.9% |
| Volatility (ann.) | 15.4% | 19.1% |
| Beta vs S&P 500 | 0.11 | 0.13 |
| Max drawdown (3Y) | -15.5% | -27.5% |
| Market cap | $383.2B | $190.9B |
| P/E (trailing) | 27.0 | 18.6 |
| Dividend yield | 2.31% | 4.04% |
| Sector / category | Consumer Staples | Consumer Staples |
Year-by-year returns
| Year | KO | PEP |
|---|---|---|
| 2022 | +10.6% | +6.8% |
| 2023 | -4.4% | -3.3% |
| 2024 | +8.9% | -7.6% |
| 2025 | +15.6% | -1.8% |
| 2026 | +29.1% | -0.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KO and PEP good diversifiers for each other?
Somewhat, no more. With 0.54 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between KO and PEP?
As of 2026-08-27, the correlation of weekly returns between KO and PEP is 0.54 over 3 years, 0.57 over 1 year and 0.64 over 5 years.
Is PEP a good diversifier for KO?
Somewhat, no more. With 0.54 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.54 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/ko-vs-pep.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ko-vs-pep/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: KO correlations · PEP correlations
