AEP vs NOW: Correlation
American Electric Power (AEP) and ServiceNow (NOW) show a negative relationship: their 3-year correlation of weekly returns is -0.23.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AEP and NOW?
On 3 years of weekly data the AEP/NOW correlation comes out at -0.23, negative, meaning they tend to move in opposite directions. Little has changed lately, as the 1-year reading of -0.29 lands near the 3-year figure. The 5-year figure is -0.07, and annualized covariance runs at -184.6 %².
Among the 36 assets we track against AEP, NOW ranks #26 by 3-year correlation. The last year tells two different stories: AEP led by 34.2 percentage points, +12.1% for AEP against -22.1% for NOW. Across three years, the rolling one-year figure varied moderately, from -0.34 to 0.14. One caveat on sizing: NOW is 2.3 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 NOW: side by side
| AEP (American Electric Power) | NOW (ServiceNow) | |
|---|---|---|
| 1-year return | +12.1% | -22.1% |
| 5-year return | +63.9% | +7.9% |
| Volatility (ann.) | 18.9% | 43.2% |
| Beta vs S&P 500 | -0.01 | 1.38 |
| Max drawdown (3Y) | -13.1% | -64.5% |
| Market cap | $66.8B | $143.1B |
| P/E (trailing) | 21.4 | 78.7 |
| Dividend yield | 3.06% | 0.00% |
| Sector / category | Utilities | Information Technology |
Year-by-year returns
| Year | AEP | NOW |
|---|---|---|
| 2022 | +10.4% | -40.2% |
| 2023 | -11.0% | +82.0% |
| 2024 | +18.2% | +50.1% |
| 2025 | +29.4% | -27.7% |
| 2026 | +8.9% | -9.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AEP and NOW good diversifiers for each other?
Yes. With a correlation of -0.23, AEP and NOW have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between AEP and NOW?
The AEP/NOW correlation stands at -0.23 on a 3-year window (1 year: -0.29, 5 years: -0.07), computed from weekly returns as of 2026-08-27.
Is NOW a good diversifier for AEP?
Yes. With a correlation of -0.23, AEP and NOW have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.23 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-now.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/aep-vs-now/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: AEP correlations · NOW correlations
