AEP vs ETR: Correlation
Measured on weekly returns over the past three years, American Electric Power (AEP) and Entergy (ETR) carry a correlation of 0.74, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AEP and ETR?
Across a 3-year window, the weekly returns of AEP and ETR correlate at 0.74, strong. The relationship has been stable: the 1-year correlation (0.84) sits close to the 3-year figure. Stretching to 5 years gives 0.78, with an annualized covariance of 275.1 %².
Among the 36 assets we track against AEP, ETR ranks #10 by 3-year correlation. On 12-month performance ETR holds a 9.8-point edge, +12.1% against +21.9%. On a rolling one-year basis the correlation drifted between 0.56 and 0.83, 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 ETR: side by side
| AEP (American Electric Power) | ETR (Entergy) | |
|---|---|---|
| 1-year return | +12.1% | +21.9% |
| 5-year return | +63.9% | +132.0% |
| Volatility (ann.) | 18.9% | 19.7% |
| Beta vs S&P 500 | -0.01 | 0.22 |
| Max drawdown (3Y) | -13.1% | -10.6% |
| Market cap | $66.8B | $49.7B |
| P/E (trailing) | 21.4 | 27.2 |
| Dividend yield | 3.06% | 2.35% |
| Sector / category | Utilities | Utilities |
Year-by-year returns
| Year | AEP | ETR |
|---|---|---|
| 2022 | +10.4% | +3.6% |
| 2023 | -11.0% | -6.1% |
| 2024 | +18.2% | +56.0% |
| 2025 | +29.4% | +25.3% |
| 2026 | +8.9% | +17.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AEP and ETR good diversifiers for each other?
Somewhat, no more. With 0.74 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between AEP and ETR?
Using weekly returns as of 2026-08-27: 0.74 over 3 years, with 0.84 over the last year and 0.78 over 5 years.
Is ETR a good diversifier for AEP?
Somewhat, no more. With 0.74 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.74 mean?
A reading of 0.74 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: AEP correlations · ETR correlations
