AAOI vs ETN: Correlation
Applied Optoelectronics, Inc. (AAOI) and Eaton Corporation (ETN) show a moderate relationship: their 3-year correlation of weekly returns is 0.49.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AAOI and ETN?
On 3 years of weekly data the AAOI/ETN correlation comes out at 0.49, moderate. Recent behaviour matches the longer record: 0.49 over 1 year against 0.49 over 3. The 5-year figure is 0.40, and annualized covariance runs at 1775.1 %².
ETN is one of the assets that tracks AAOI most closely: it ranks #3 out of the 11 assets we track against AAOI. Correlation aside, the last 12 months split them widely, with AAOI ahead by 351.3 points (+371.0% versus +19.7%). Risk is not evenly split, since AAOI carries 4.0 times the volatility of the other side.
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.
AAOI vs ETN: side by side
| AAOI (Applied Optoelectronics, Inc.) | ETN (Eaton Corporation) | |
|---|---|---|
| 1-year return | +371.0% | +19.7% |
| 5-year return | +1456.0% | +164.1% |
| Volatility (ann.) | 119.6% | 30.2% |
| Beta vs S&P 500 | 3.25 | 1.33 |
| Max drawdown (3Y) | -77.2% | -34.5% |
| Market cap | $9.6B | $161.6B |
| P/E (trailing) | – | 42.4 |
| Dividend yield | 0.00% | 1.02% |
| Sector / category | US Listed | Industrials |
Year-by-year returns
| Year | AAOI | ETN |
|---|---|---|
| 2022 | -63.2% | -7.2% |
| 2023 | +922.2% | +56.2% |
| 2024 | +90.8% | +39.5% |
| 2025 | -5.4% | -2.8% |
| 2026 | +225.0% | +31.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AAOI and ETN good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.49 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between AAOI and ETN?
Using weekly returns as of 2026-08-27: 0.49 over 3 years, with 0.49 over the last year and 0.40 over 5 years.
Is ETN a good diversifier for AAOI?
Yes, to a useful degree: a correlation of 0.49 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.49 mean?
A reading of 0.49 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: AAOI correlations · ETN correlations
