AEP vs SPY: Correlation
How closely do American Electric Power (AEP) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of -0.01, which is near-zero.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AEP and SPY?
On 3 years of weekly data the AEP/SPY correlation comes out at -0.01, near zero, meaning they move largely independently. Lately the two have drifted apart, with the 1-year correlation at -0.15 versus -0.01 over 3 years. The 5-year figure is 0.21, and annualized covariance runs at -3.0 %².
By 3-year correlation, SPY places #20 of the 36 assets tracked against AEP. On 12-month performance SPY holds a 8.5-point edge, +12.1% against +20.6%. This link changes with the market regime, having swung between -0.19 and 0.41 on a rolling one-year basis.
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 SPY: side by side
| AEP (American Electric Power) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +12.1% | +20.6% |
| 5-year return | +63.9% | +82.4% |
| Volatility (ann.) | 18.9% | 14.5% |
| Beta vs S&P 500 | -0.01 | 1.00 |
| Max drawdown (3Y) | -13.1% | -18.8% |
| Market cap | $66.8B | – |
| P/E (trailing) | 21.4 | – |
| Dividend yield | 3.06% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | Utilities | ETF · US Large Cap |
SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | AEP | SPY |
|---|---|---|
| 2022 | +10.4% | -18.2% |
| 2023 | -11.0% | +26.2% |
| 2024 | +18.2% | +24.9% |
| 2025 | +29.4% | +17.7% |
| 2026 | +8.9% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
AEP represents 0.1% of SPY's portfolio, so part of any move in SPY is AEP itself, and the correlation between them is partly mechanical.
Are AEP and SPY good diversifiers for each other?
Yes: at -0.01, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between AEP and SPY?
The AEP/SPY correlation stands at -0.01 on a 3-year window (1 year: -0.15, 5 years: 0.21), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for AEP?
Yes: at -0.01, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.01 mean?
A reading of -0.01 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: AEP correlations · SPY correlations
