AWK vs LPLA: Correlation
How closely do American Water Works (AWK) and LPL Financial Holdings Inc. (LPLA) trade together? Their weekly returns over three years give a correlation of -0.26, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AWK and LPLA?
On 3 years of weekly data the AWK/LPLA correlation comes out at -0.26, negative, meaning they tend to move in opposite directions. Little has changed lately, as the 1-year reading of -0.36 lands near the 3-year figure. The 5-year figure is -0.12, and annualized covariance runs at -182.3 %².
By 3-year correlation, LPLA places #44 of the 49 assets tracked against AWK. Twelve-month performance is nearly a tie, at -3.0% for AWK and -0.9% for LPLA. One caveat on sizing: LPLA is 1.7 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.
AWK vs LPLA: side by side
| AWK (American Water Works) | LPLA (LPL Financial Holdings Inc.) | |
|---|---|---|
| 1-year return | -3.0% | -0.9% |
| 5-year return | -16.6% | +149.0% |
| Volatility (ann.) | 20.7% | 34.6% |
| Beta vs S&P 500 | -0.11 | 0.97 |
| Max drawdown (3Y) | -18.8% | -33.2% |
| Market cap | $27.2B | $28.4B |
| P/E (trailing) | 23.7 | 28.8 |
| Dividend yield | 2.46% | 0.33% |
| Sector / category | Utilities | US Listed |
Year-by-year returns
| Year | AWK | LPLA |
|---|---|---|
| 2022 | -17.9% | +35.7% |
| 2023 | -11.7% | +5.9% |
| 2024 | -3.5% | +44.1% |
| 2025 | +7.4% | +9.8% |
| 2026 | +6.9% | +1.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AWK and LPLA good diversifiers for each other?
Yes. With a correlation of -0.26, AWK and LPLA have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between AWK and LPLA?
Using weekly returns as of 2026-08-27: -0.26 over 3 years, with -0.36 over the last year and -0.12 over 5 years.
Is LPLA a good diversifier for AWK?
Yes. With a correlation of -0.26, AWK and LPLA have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.26 mean?
A reading of -0.26 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/awk-vs-lpla.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/awk-vs-lpla/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: AWK correlations · LPLA correlations
