AEE vs AEP: Correlation
Ameren (AEE) and American Electric Power (AEP) show a strong relationship: their 3-year correlation of weekly returns is 0.74.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AEE and AEP?
Across a 3-year window, the weekly returns of AEE and AEP correlate at 0.74, strong. The link has tightened recently: the 1-year correlation (0.87) runs above the 3-year figure (0.74). Stretching to 5 years gives 0.81, with an annualized covariance of 249.9 %².
Within AEE's tracked universe of 35 assets, AEP comes in at #14 by 3-year correlation. Their 12-month results are close: +8.8% for AEE against +12.1% for AEP. The rolling one-year correlation moved between 0.53 and 0.88 over the past three years, a moderate range.
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.
AEE vs AEP: side by side
| AEE (Ameren) | AEP (American Electric Power) | |
|---|---|---|
| 1-year return | +8.8% | +12.1% |
| 5-year return | +39.7% | +63.9% |
| Volatility (ann.) | 17.8% | 18.9% |
| Beta vs S&P 500 | 0.10 | -0.01 |
| Max drawdown (3Y) | -16.5% | -13.1% |
| Market cap | $29.6B | $66.8B |
| P/E (trailing) | 19.0 | 21.4 |
| Dividend yield | 2.71% | 3.06% |
| Sector / category | Utilities | Utilities |
Year-by-year returns
| Year | AEE | AEP |
|---|---|---|
| 2022 | +2.5% | +10.4% |
| 2023 | -16.1% | -11.0% |
| 2024 | +27.5% | +18.2% |
| 2025 | +15.3% | +29.4% |
| 2026 | +8.4% | +8.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AEE and AEP good diversifiers for each other?
Only partially. A correlation of 0.74 means AEE and AEP share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between AEE and AEP?
The AEE/AEP correlation stands at 0.74 on a 3-year window (1 year: 0.87, 5 years: 0.81), computed from weekly returns as of 2026-08-27.
Is AEP a good diversifier for AEE?
Only partially. A correlation of 0.74 means AEE and AEP share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.74 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/aee-vs-aep.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/aee-vs-aep/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: AEE correlations · AEP correlations
