AEP vs XLU: Correlation
How closely do American Electric Power (AEP) and Utilities Select Sector SPDR Fund (XLU) trade together? Their weekly returns over three years give a correlation of 0.79, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AEP and XLU?
On 3 years of weekly data the AEP/XLU correlation comes out at 0.79, strong. Recent behaviour matches the longer record: 0.87 over 1 year against 0.79 over 3. The 5-year figure is 0.85, and annualized covariance runs at 235.3 %².
In AEP's tracked universe of 36 assets, XLU sits right near the top at #2. The trailing year gives AEP the advantage: +12.1% versus +4.1%, a 8.0-point spread. Across three years, the rolling one-year figure varied moderately, from 0.59 to 0.92.
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 XLU: side by side
| AEP (American Electric Power) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +12.1% | +4.1% |
| 5-year return | +63.9% | +46.3% |
| Volatility (ann.) | 18.9% | 15.8% |
| Beta vs S&P 500 | -0.01 | 0.26 |
| Max drawdown (3Y) | -13.1% | -13.1% |
| Market cap | $66.8B | – |
| P/E (trailing) | 21.4 | – |
| Dividend yield | 3.06% | 2.70% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $23.1B |
| Sector / category | Utilities | Sector ETF |
XLU is an Utilities fund from State Street Investment Management: $23.1B under management, 31 holdings, a 0.08% expense ratio, a 2.70% trailing dividend yield.
Year-by-year returns
| Year | AEP | XLU |
|---|---|---|
| 2022 | +10.4% | +1.4% |
| 2023 | -11.0% | -7.2% |
| 2024 | +18.2% | +23.3% |
| 2025 | +29.4% | +16.0% |
| 2026 | +8.9% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 4.94% of XLU is AEP itself, so the fund partly moves with the stock by construction.
Are AEP and XLU good diversifiers for each other?
To a limited degree. At 0.79 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 XLU?
As of 2026-08-27, the correlation of weekly returns between AEP and XLU is 0.79 over 3 years, 0.87 over 1 year and 0.85 over 5 years.
Is XLU a good diversifier for AEP?
To a limited degree. At 0.79 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 0.79 mean?
On the −1 to +1 scale, 0.79 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/aep-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/aep-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: AEP correlations · XLU correlations
