AEO vs M: Correlation
How closely do American Eagle Outfitters, Inc. (AEO) and Macy's Inc (M) trade together? Their weekly returns over three years give a correlation of 0.51, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AEO and M?
On 3 years of weekly data the AEO/M correlation comes out at 0.51, moderate. The past 12 months show a tighter link (0.77) than the 3-year average (0.51). The 5-year figure is 0.51, and annualized covariance runs at 1364.5 %².
Within AEO's tracked universe of 14 assets, M comes in at #5 by 3-year correlation. The last year tells two different stories: M led by 42.1 percentage points, +29.7% for AEO against +71.8% for M.
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.
AEO vs M: side by side
| AEO (American Eagle Outfitters, Inc.) | M (Macy's Inc) | |
|---|---|---|
| 1-year return | +29.7% | +71.8% |
| 5-year return | -39.1% | +21.5% |
| Volatility (ann.) | 54.2% | 49.3% |
| Beta vs S&P 500 | 1.21 | 1.06 |
| Max drawdown (3Y) | -63.1% | -51.3% |
| Market cap | – | $5.9B |
| P/E (trailing) | 10.5 | 9.4 |
| Dividend yield | 2.84% | 3.24% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | AEO | M |
|---|---|---|
| 2022 | -43.4% | -18.7% |
| 2023 | +54.9% | +1.6% |
| 2024 | -19.3% | -12.4% |
| 2025 | +64.7% | +36.5% |
| 2026 | -35.5% | +4.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AEO and M good diversifiers for each other?
Only partially. A correlation of 0.51 means AEO and M 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 AEO and M?
The AEO/M correlation stands at 0.51 on a 3-year window (1 year: 0.77, 5 years: 0.51), computed from weekly returns as of 2026-08-27.
Is M a good diversifier for AEO?
Only partially. A correlation of 0.51 means AEO and M share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.51 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/aeo-vs-m.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/aeo-vs-m/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: AEO correlations · M correlations
