AEP vs CMS: Correlation
Measured on weekly returns over the past three years, American Electric Power (AEP) and CMS Energy (CMS) carry a correlation of 0.79, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AEP and CMS?
Across a 3-year window, the weekly returns of AEP and CMS correlate at 0.79, strong. Little has changed lately, as the 1-year reading of 0.87 lands near the 3-year figure. Stretching to 5 years gives 0.84, with an annualized covariance of 241.8 %².
In AEP's tracked universe of 36 assets, CMS sits right near the top at #1. The trailing year gives AEP the advantage: +12.1% versus -2.4%, a 14.5-point spread. On a rolling one-year basis the correlation drifted between 0.58 and 0.89, 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.
AEP vs CMS: side by side
| AEP (American Electric Power) | CMS (CMS Energy) | |
|---|---|---|
| 1-year return | +12.1% | -2.4% |
| 5-year return | +63.9% | +23.8% |
| Volatility (ann.) | 18.9% | 16.2% |
| Beta vs S&P 500 | -0.01 | -0.01 |
| Max drawdown (3Y) | -13.1% | -13.2% |
| Market cap | $66.8B | $21.4B |
| P/E (trailing) | 21.4 | 20.8 |
| Dividend yield | 3.06% | 3.21% |
| Sector / category | Utilities | Utilities |
Year-by-year returns
| Year | AEP | CMS |
|---|---|---|
| 2022 | +10.4% | +0.2% |
| 2023 | -11.0% | -5.2% |
| 2024 | +18.2% | +18.6% |
| 2025 | +29.4% | +8.1% |
| 2026 | +8.9% | +0.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AEP and CMS good diversifiers for each other?
Only partially. A correlation of 0.79 means AEP and CMS 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 AEP and CMS?
As of 2026-08-27, the correlation of weekly returns between AEP and CMS is 0.79 over 3 years, 0.87 over 1 year and 0.84 over 5 years.
Is CMS a good diversifier for AEP?
Only partially. A correlation of 0.79 means AEP and CMS share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.79 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/aep-vs-cms.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/aep-vs-cms/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: AEP correlations · CMS correlations
