AEP vs ES: Correlation
Measured on weekly returns over the past three years, American Electric Power (AEP) and Eversource Energy (ES) carry a correlation of 0.63, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AEP and ES?
On 3 years of weekly data the AEP/ES correlation comes out at 0.63, strong. The relationship has been stable: the 1-year correlation (0.62) sits close to the 3-year figure. The 5-year figure is 0.74, and annualized covariance runs at 275.1 %².
By 3-year correlation, ES places #16 of the 36 assets tracked against AEP. Their 12-month results are close: +12.1% for AEP against +14.5% for ES. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.27 to 0.92.
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 ES: side by side
| AEP (American Electric Power) | ES (Eversource Energy) | |
|---|---|---|
| 1-year return | +12.1% | +14.5% |
| 5-year return | +63.9% | -5.0% |
| Volatility (ann.) | 18.9% | 22.9% |
| Beta vs S&P 500 | -0.01 | 0.20 |
| Max drawdown (3Y) | -13.1% | -18.8% |
| Market cap | $66.8B | $26.7B |
| P/E (trailing) | 21.4 | 18.6 |
| Dividend yield | 3.06% | 4.30% |
| Sector / category | Utilities | Utilities |
Year-by-year returns
| Year | AEP | ES |
|---|---|---|
| 2022 | +10.4% | -5.1% |
| 2023 | -11.0% | -23.4% |
| 2024 | +18.2% | -2.5% |
| 2025 | +29.4% | +22.9% |
| 2026 | +8.9% | +7.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AEP and ES good diversifiers for each other?
To a limited degree. At 0.63 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between AEP and ES?
The AEP/ES correlation stands at 0.63 on a 3-year window (1 year: 0.62, 5 years: 0.74), computed from weekly returns as of 2026-08-27.
Is ES a good diversifier for AEP?
To a limited degree. At 0.63 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.63 mean?
On the −1 to +1 scale, 0.63 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/aep-vs-es.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/aep-vs-es/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: AEP correlations · ES correlations
