PEP vs PG: Correlation
PepsiCo (PEP) and Procter & Gamble (PG) show a moderate relationship: their 3-year correlation of weekly returns is 0.55.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PEP and PG?
Across a 3-year window, the weekly returns of PEP and PG correlate at 0.55, moderate. Recent behaviour matches the longer record: 0.51 over 1 year against 0.55 over 3. Stretching to 5 years gives 0.61, with an annualized covariance of 159.4 %².
Few assets follow PEP as closely as PG, which ranks #3 of 38 tracked partners. Twelve-month performance is nearly a tie, at -1.6% for PEP and -6.1% for PG. On a rolling one-year basis the correlation drifted between 0.41 and 0.67, a moderate band.
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.
PEP vs PG: side by side
| PEP (PepsiCo) | PG (Procter & Gamble) | |
|---|---|---|
| 1-year return | -1.6% | -6.1% |
| 5-year return | +4.9% | +13.9% |
| Volatility (ann.) | 19.1% | 15.3% |
| Beta vs S&P 500 | 0.13 | 0.19 |
| Max drawdown (3Y) | -27.5% | -21.2% |
| Market cap | $190.9B | $332.7B |
| P/E (trailing) | 18.6 | 21.9 |
| Dividend yield | 4.04% | 2.94% |
| Sector / category | Consumer Staples | Consumer Staples |
Year-by-year returns
| Year | PEP | PG |
|---|---|---|
| 2022 | +6.8% | -5.0% |
| 2023 | -3.3% | -0.9% |
| 2024 | -7.6% | +17.3% |
| 2025 | -1.8% | -12.3% |
| 2026 | -0.7% | +2.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PEP and PG good diversifiers for each other?
To a limited degree. At 0.55 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between PEP and PG?
As of 2026-08-27, the correlation of weekly returns between PEP and PG is 0.55 over 3 years, 0.51 over 1 year and 0.61 over 5 years.
Is PG a good diversifier for PEP?
To a limited degree. At 0.55 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.55 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.
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Related comparisons
Hubs: PEP correlations · PG correlations
