O vs PEP: Correlation
How closely do Realty Income (O) and PepsiCo (PEP) trade together? Their weekly returns over three years give a correlation of 0.45, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are O and PEP?
Over the past 3 years, O and PEP moved with a correlation of 0.45, which is moderate. Little has changed lately, as the 1-year reading of 0.41 lands near the 3-year figure. Over 5 years the correlation is 0.43, and the annualized covariance of weekly returns is 146.9 %².
Within O's tracked universe of 44 assets, PEP comes in at #30 by 3-year correlation. On 12-month performance O holds a 12.9-point edge, +11.3% against -1.6%. The rolling one-year correlation moved between 0.26 and 0.61 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.
O vs PEP: side by side
| O (Realty Income) | PEP (PepsiCo) | |
|---|---|---|
| 1-year return | +11.3% | -1.6% |
| 5-year return | +14.5% | +4.9% |
| Volatility (ann.) | 17.3% | 19.1% |
| Beta vs S&P 500 | 0.21 | 0.13 |
| Max drawdown (3Y) | -19.3% | -27.5% |
| Market cap | $58.5B | $190.9B |
| P/E (trailing) | 45.4 | 18.6 |
| Dividend yield | 5.20% | 4.04% |
| Sector / category | Real Estate | Consumer Staples |
Year-by-year returns
| Year | O | PEP |
|---|---|---|
| 2022 | -7.4% | +6.8% |
| 2023 | -4.5% | -3.3% |
| 2024 | -2.1% | -7.6% |
| 2025 | +12.2% | -1.8% |
| 2026 | +13.0% | -0.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are O and PEP good diversifiers for each other?
Reasonably. At 0.45, O and PEP keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between O and PEP?
The O/PEP correlation stands at 0.45 on a 3-year window (1 year: 0.41, 5 years: 0.43), computed from weekly returns as of 2026-08-27.
Is PEP a good diversifier for O?
Reasonably. At 0.45, O and PEP keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.45 mean?
On the −1 to +1 scale, 0.45 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/o-vs-pep.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/o-vs-pep/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: O correlations · PEP correlations
