AEP vs PPL: Correlation
How closely do American Electric Power (AEP) and PPL Corporation (PPL) trade together? Their weekly returns over three years give a correlation of 0.74, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AEP and PPL?
Over the past 3 years, AEP and PPL moved with a correlation of 0.74, which is strong. The relationship has been stable: the 1-year correlation (0.77) sits close to the 3-year figure. Over 5 years the correlation is 0.77, and the annualized covariance of weekly returns is 242.4 %².
By 3-year correlation, PPL places #11 of the 36 assets tracked against AEP. Correlation aside, the last 12 months split them widely, with AEP ahead by 15.1 points (+12.1% versus -3.0%). On a rolling one-year basis the correlation drifted between 0.54 and 0.87, 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 PPL: side by side
| AEP (American Electric Power) | PPL (PPL Corporation) | |
|---|---|---|
| 1-year return | +12.1% | -3.0% |
| 5-year return | +63.9% | +41.1% |
| Volatility (ann.) | 18.9% | 17.4% |
| Beta vs S&P 500 | -0.01 | 0.13 |
| Max drawdown (3Y) | -13.1% | -13.3% |
| Market cap | $66.8B | $25.9B |
| P/E (trailing) | 21.4 | 20.7 |
| Dividend yield | 3.06% | 3.18% |
| Sector / category | Utilities | Utilities |
Year-by-year returns
| Year | AEP | PPL |
|---|---|---|
| 2022 | +10.4% | +0.4% |
| 2023 | -11.0% | -3.8% |
| 2024 | +18.2% | +24.0% |
| 2025 | +29.4% | +11.4% |
| 2026 | +8.9% | -0.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AEP and PPL good diversifiers for each other?
To a limited degree. At 0.74 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between AEP and PPL?
The AEP/PPL correlation stands at 0.74 on a 3-year window (1 year: 0.77, 5 years: 0.77), computed from weekly returns as of 2026-08-27.
Is PPL a good diversifier for AEP?
To a limited degree. At 0.74 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/aep-vs-ppl.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/aep-vs-ppl/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: AEP correlations · PPL correlations
