PEP vs SPY: Correlation
PepsiCo (PEP) and SPDR S&P 500 ETF Trust (SPY) show a weak relationship: their 3-year correlation of weekly returns is 0.10.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PEP and SPY?
Over the past 3 years, PEP and SPY moved with a correlation of 0.10, which is weak. The link has loosened recently: the 1-year correlation (-0.01) runs below the 3-year figure (0.10). Over 5 years the correlation is 0.28, and the annualized covariance of weekly returns is 28.1 %².
Within PEP's tracked universe of 38 assets, SPY comes in at #25 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months SPY outperformed by 22.2 percentage points (-1.6% for PEP against +20.6% for SPY). Across three years, the rolling one-year figure varied moderately, from -0.04 to 0.44.
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 SPY: side by side
| PEP (PepsiCo) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -1.6% | +20.6% |
| 5-year return | +4.9% | +82.4% |
| Volatility (ann.) | 19.1% | 14.5% |
| Beta vs S&P 500 | 0.13 | 1.00 |
| Max drawdown (3Y) | -27.5% | -18.8% |
| Market cap | $190.9B | – |
| P/E (trailing) | 18.6 | – |
| Dividend yield | 4.04% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | Consumer Staples | ETF · US Large Cap |
SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | PEP | SPY |
|---|---|---|
| 2022 | +6.8% | -18.2% |
| 2023 | -3.3% | +26.2% |
| 2024 | -7.6% | +24.9% |
| 2025 | -1.8% | +17.7% |
| 2026 | -0.7% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.29% of SPY is PEP itself, so the fund partly moves with the stock by construction.
Are PEP and SPY good diversifiers for each other?
Yes. With a correlation of 0.10, PEP and SPY have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between PEP and SPY?
Using weekly returns as of 2026-08-27: 0.10 over 3 years, with -0.01 over the last year and 0.28 over 5 years.
Is SPY a good diversifier for PEP?
Yes. With a correlation of 0.10, PEP and SPY have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of 0.10 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 · SPY correlations
