AEP vs WEC: Correlation
American Electric Power (AEP) and WEC Energy Group (WEC) show a strong relationship: their 3-year correlation of weekly returns is 0.75.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AEP and WEC?
Across a 3-year window, the weekly returns of AEP and WEC correlate at 0.75, strong. The relationship has been stable: the 1-year correlation (0.80) sits close to the 3-year figure. Stretching to 5 years gives 0.82, with an annualized covariance of 239.8 %².
Within AEP's tracked universe of 36 assets, WEC comes in at #7 by 3-year correlation. Over the last 12 months AEP came out ahead by 10.0 percentage points (+12.1% against +2.1%). Across three years, the rolling one-year figure varied moderately, from 0.53 to 0.88.
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 WEC: side by side
| AEP (American Electric Power) | WEC (WEC Energy Group) | |
|---|---|---|
| 1-year return | +12.1% | +2.1% |
| 5-year return | +63.9% | +32.7% |
| Volatility (ann.) | 18.9% | 16.9% |
| Beta vs S&P 500 | -0.01 | 0.02 |
| Max drawdown (3Y) | -13.1% | -11.6% |
| Market cap | $66.8B | $34.6B |
| P/E (trailing) | 21.4 | 20.6 |
| Dividend yield | 3.06% | 3.43% |
| Sector / category | Utilities | Utilities |
Year-by-year returns
| Year | AEP | WEC |
|---|---|---|
| 2022 | +10.4% | -0.5% |
| 2023 | -11.0% | -7.0% |
| 2024 | +18.2% | +16.1% |
| 2025 | +29.4% | +16.0% |
| 2026 | +8.9% | +3.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AEP and WEC good diversifiers for each other?
Somewhat, no more. With 0.75 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between AEP and WEC?
Using weekly returns as of 2026-08-27: 0.75 over 3 years, with 0.80 over the last year and 0.82 over 5 years.
Is WEC a good diversifier for AEP?
Somewhat, no more. With 0.75 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.75 mean?
A reading of 0.75 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 · WEC correlations
