AEP vs MSFT: Correlation
Measured on weekly returns over the past three years, American Electric Power (AEP) and Microsoft (MSFT) carry a correlation of -0.25, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AEP and MSFT?
On 3 years of weekly data the AEP/MSFT correlation comes out at -0.25, negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.31) sits close to the 3-year figure. The 5-year figure is -0.04, and annualized covariance runs at -130.3 %².
Within AEP's tracked universe of 36 assets, MSFT comes in at #29 by 3-year correlation. Over the last 12 months AEP came out ahead by 11.6 percentage points (+12.1% against +0.5%). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.42 to 0.20.
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 MSFT: side by side
| AEP (American Electric Power) | MSFT (Microsoft) | |
|---|---|---|
| 1-year return | +12.1% | +0.5% |
| 5-year return | +63.9% | +73.3% |
| Volatility (ann.) | 18.9% | 27.5% |
| Beta vs S&P 500 | -0.01 | 1.12 |
| Max drawdown (3Y) | -13.1% | -34.5% |
| Market cap | $66.8B | $3,750.3B |
| P/E (trailing) | 21.4 | 28.1 |
| Dividend yield | 3.06% | 0.73% |
| Sector / category | Utilities | Information Technology |
Year-by-year returns
| Year | AEP | MSFT |
|---|---|---|
| 2022 | +10.4% | -28.0% |
| 2023 | -11.0% | +58.2% |
| 2024 | +18.2% | +12.9% |
| 2025 | +29.4% | +15.6% |
| 2026 | +8.9% | +5.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AEP and MSFT good diversifiers for each other?
Yes: at -0.25, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between AEP and MSFT?
Using weekly returns as of 2026-08-27: -0.25 over 3 years, with -0.31 over the last year and -0.04 over 5 years.
Is MSFT a good diversifier for AEP?
Yes: at -0.25, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.25 mean?
A reading of -0.25 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/aep-vs-msft.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/aep-vs-msft/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: AEP correlations · MSFT correlations
