AAP vs AZO: Correlation
Measured on weekly returns over the past three years, Advance Auto Parts Inc. (AAP) and AutoZone (AZO) carry a correlation of 0.41, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AAP and AZO?
Across a 3-year window, the weekly returns of AAP and AZO correlate at 0.41, moderate. The relationship has been stable: the 1-year correlation (0.42) sits close to the 3-year figure. Stretching to 5 years gives 0.48, with an annualized covariance of 552.5 %².
In AAP's tracked universe of 11 assets, AZO sits right near the top at #1. Their 12-month results are close: -26.7% for AAP against -30.3% for AZO. Note the risk asymmetry: AAP runs 2.5 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
AAP vs AZO: side by side
| AAP (Advance Auto Parts Inc.) | AZO (AutoZone) | |
|---|---|---|
| 1-year return | -26.7% | -30.3% |
| 5-year return | -75.5% | +88.5% |
| Volatility (ann.) | 57.4% | 23.2% |
| Beta vs S&P 500 | 0.80 | 0.31 |
| Max drawdown (3Y) | -64.2% | -32.9% |
| Market cap | – | – |
| P/E (trailing) | 24.7 | 20.6 |
| Dividend yield | 2.27% | 0.00% |
| Sector / category | US Listed | Consumer Discretionary |
Year-by-year returns
| Year | AAP | AZO |
|---|---|---|
| 2022 | -36.5% | +17.6% |
| 2023 | -57.6% | +4.8% |
| 2024 | -21.1% | +23.8% |
| 2025 | -15.0% | +5.9% |
| 2026 | +12.8% | -13.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AAP and AZO good diversifiers for each other?
Reasonably. At 0.41, AAP and AZO keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between AAP and AZO?
As of 2026-08-27, the correlation of weekly returns between AAP and AZO is 0.41 over 3 years, 0.42 over 1 year and 0.48 over 5 years.
Is AZO a good diversifier for AAP?
Reasonably. At 0.41, AAP and AZO keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.41 mean?
On the −1 to +1 scale, 0.41 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/aap-vs-azo.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/aap-vs-azo/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: AAP correlations · AZO correlations
