PEP vs STZ: Correlation
How closely do PepsiCo (PEP) and Constellation Brands (STZ) 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 PEP and STZ?
On 3 years of weekly data the PEP/STZ correlation comes out at 0.45, moderate. Recent behaviour matches the longer record: 0.42 over 1 year against 0.45 over 3. The 5-year figure is 0.47, and annualized covariance runs at 226.6 %².
Within PEP's tracked universe of 38 assets, STZ comes in at #15 by 3-year correlation. Over the last 12 months PEP came out ahead by 14.1 percentage points (-1.6% against -15.7%). On a rolling one-year basis the correlation drifted between 0.20 and 0.53, 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 STZ: side by side
| PEP (PepsiCo) | STZ (Constellation Brands) | |
|---|---|---|
| 1-year return | -1.6% | -15.7% |
| 5-year return | +4.9% | -31.9% |
| Volatility (ann.) | 19.1% | 26.6% |
| Beta vs S&P 500 | 0.13 | 0.41 |
| Max drawdown (3Y) | -27.5% | -51.3% |
| Market cap | $190.9B | $22.4B |
| P/E (trailing) | 18.6 | 12.8 |
| Dividend yield | 4.04% | 3.04% |
| Sector / category | Consumer Staples | Consumer Staples |
Year-by-year returns
| Year | PEP | STZ |
|---|---|---|
| 2022 | +6.8% | -6.4% |
| 2023 | -3.3% | +5.8% |
| 2024 | -7.6% | -7.1% |
| 2025 | -1.8% | -36.0% |
| 2026 | -0.7% | -2.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PEP and STZ good diversifiers for each other?
Reasonably. At 0.45, PEP and STZ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between PEP and STZ?
Using weekly returns as of 2026-08-27: 0.45 over 3 years, with 0.42 over the last year and 0.47 over 5 years.
Is STZ a good diversifier for PEP?
Reasonably. At 0.45, PEP and STZ 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/pep-vs-stz.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/pep-vs-stz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: PEP correlations · STZ correlations
