AEP vs LNT: Correlation
Measured on weekly returns over the past three years, American Electric Power (AEP) and Alliant Energy (LNT) carry a correlation of 0.73, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AEP and LNT?
Over the past 3 years, AEP and LNT moved with a correlation of 0.73, which is strong. The past 12 months show a tighter link (0.84) than the 3-year average (0.73). Over 5 years the correlation is 0.80, and the annualized covariance of weekly returns is 240.4 %².
By 3-year correlation, LNT places #12 of the 36 assets tracked against AEP. The trailing year gives AEP the advantage: +12.1% versus +6.9%, a 5.2-point spread. On a rolling one-year basis the correlation drifted between 0.51 and 0.91, 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 LNT: side by side
| AEP (American Electric Power) | LNT (Alliant Energy) | |
|---|---|---|
| 1-year return | +12.1% | +6.9% |
| 5-year return | +63.9% | +31.9% |
| Volatility (ann.) | 18.9% | 17.5% |
| Beta vs S&P 500 | -0.01 | 0.09 |
| Max drawdown (3Y) | -13.1% | -12.4% |
| Market cap | $66.8B | $17.7B |
| P/E (trailing) | 21.4 | 21.8 |
| Dividend yield | 3.06% | 3.03% |
| Sector / category | Utilities | Utilities |
Year-by-year returns
| Year | AEP | LNT |
|---|---|---|
| 2022 | +10.4% | -7.4% |
| 2023 | -11.0% | -3.8% |
| 2024 | +18.2% | +19.5% |
| 2025 | +29.4% | +13.5% |
| 2026 | +8.9% | +7.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AEP and LNT good diversifiers for each other?
Only partially. A correlation of 0.73 means AEP and LNT 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 LNT?
Using weekly returns as of 2026-08-27: 0.73 over 3 years, with 0.84 over the last year and 0.80 over 5 years.
Is LNT a good diversifier for AEP?
Only partially. A correlation of 0.73 means AEP and LNT share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.73 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-lnt.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/aep-vs-lnt/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: AEP correlations · LNT correlations
