AEP vs JNJ: Correlation
How closely do American Electric Power (AEP) and Johnson & Johnson (JNJ) trade together? Their weekly returns over three years give a correlation of 0.53, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AEP and JNJ?
On 3 years of weekly data the AEP/JNJ correlation comes out at 0.53, moderate. The relationship has been stable: the 1-year correlation (0.52) sits close to the 3-year figure. The 5-year figure is 0.50, and annualized covariance runs at 184.8 %².
Within AEP's tracked universe of 36 assets, JNJ comes in at #18 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months JNJ outperformed by 41.6 percentage points (+12.1% for AEP against +53.7% for JNJ). The rolling one-year correlation moved between 0.36 and 0.70 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.
AEP vs JNJ: side by side
| AEP (American Electric Power) | JNJ (Johnson & Johnson) | |
|---|---|---|
| 1-year return | +12.1% | +53.7% |
| 5-year return | +63.9% | +76.0% |
| Volatility (ann.) | 18.9% | 18.5% |
| Beta vs S&P 500 | -0.01 | 0.05 |
| Max drawdown (3Y) | -13.1% | -14.4% |
| Market cap | $66.8B | $640.5B |
| P/E (trailing) | 21.4 | 30.9 |
| Dividend yield | 3.06% | 1.94% |
| Sector / category | Utilities | Health Care |
Year-by-year returns
| Year | AEP | JNJ |
|---|---|---|
| 2022 | +10.4% | +6.0% |
| 2023 | -11.0% | -8.6% |
| 2024 | +18.2% | -4.8% |
| 2025 | +29.4% | +47.5% |
| 2026 | +8.9% | +30.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AEP and JNJ good diversifiers for each other?
Only partially. A correlation of 0.53 means AEP and JNJ 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 JNJ?
As of 2026-08-27, the correlation of weekly returns between AEP and JNJ is 0.53 over 3 years, 0.52 over 1 year and 0.50 over 5 years.
Is JNJ a good diversifier for AEP?
Only partially. A correlation of 0.53 means AEP and JNJ share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.53 mean?
On the −1 to +1 scale, 0.53 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-jnj.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/aep-vs-jnj/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: AEP correlations · JNJ correlations
