KO vs PM: Correlation
Measured on weekly returns over the past three years, Coca-Cola Company (The) (KO) and Philip Morris International (PM) carry a correlation of 0.36, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KO and PM?
Over the past 3 years, KO and PM moved with a correlation of 0.36, which is moderate. Recent behaviour matches the longer record: 0.41 over 1 year against 0.36 over 3. Over 5 years the correlation is 0.49, and the annualized covariance of weekly returns is 128.1 %².
Among the 43 assets we track against KO, PM ranks #23 by 3-year correlation. The trailing year gives KO the advantage: +33.1% versus +20.2%, a 12.9-point spread. On a rolling one-year basis the correlation drifted between 0.16 and 0.62, a moderate band. One caveat on sizing: PM is 1.5 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 PM: side by side
| KO (Coca-Cola Company (The)) | PM (Philip Morris International) | |
|---|---|---|
| 1-year return | +33.1% | +20.2% |
| 5-year return | +83.8% | +133.5% |
| Volatility (ann.) | 15.4% | 23.1% |
| Beta vs S&P 500 | 0.11 | -0.01 |
| Max drawdown (3Y) | -15.5% | -20.6% |
| Market cap | $383.2B | $296.9B |
| P/E (trailing) | 27.0 | 26.7 |
| Dividend yield | 2.31% | 3.03% |
| Sector / category | Consumer Staples | Consumer Staples |
Year-by-year returns
| Year | KO | PM |
|---|---|---|
| 2022 | +10.6% | +12.3% |
| 2023 | -4.4% | -1.9% |
| 2024 | +8.9% | +34.3% |
| 2025 | +15.6% | +38.0% |
| 2026 | +29.1% | +20.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KO and PM good diversifiers for each other?
A fair diversifier. At 0.36, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between KO and PM?
The KO/PM correlation stands at 0.36 on a 3-year window (1 year: 0.41, 5 years: 0.49), computed from weekly returns as of 2026-08-27.
Is PM a good diversifier for KO?
A fair diversifier. At 0.36, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.36 mean?
On the −1 to +1 scale, 0.36 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/ko-vs-pm.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ko-vs-pm/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: KO correlations · PM correlations
