AWK vs SO: Correlation
Measured on weekly returns over the past three years, American Water Works (AWK) and Southern Company (SO) carry a correlation of 0.63, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AWK and SO?
Across a 3-year window, the weekly returns of AWK and SO correlate at 0.63, strong. The link has loosened recently: the 1-year correlation (0.49) runs below the 3-year figure (0.63). Stretching to 5 years gives 0.68, with an annualized covariance of 215.9 %².
By 3-year correlation, SO places #8 of the 49 assets tracked against AWK. Neither side won the trailing year by much: -3.0% against -1.4%. On a rolling one-year basis the correlation drifted between 0.44 and 0.76, 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.
AWK vs SO: side by side
| AWK (American Water Works) | SO (Southern Company) | |
|---|---|---|
| 1-year return | -3.0% | -1.4% |
| 5-year return | -16.6% | +62.6% |
| Volatility (ann.) | 20.7% | 16.5% |
| Beta vs S&P 500 | -0.11 | -0.02 |
| Max drawdown (3Y) | -18.8% | -15.0% |
| Market cap | $27.2B | $102.4B |
| P/E (trailing) | 23.7 | 21.7 |
| Dividend yield | 2.46% | 3.32% |
| Sector / category | Utilities | Utilities |
Year-by-year returns
| Year | AWK | SO |
|---|---|---|
| 2022 | -17.9% | +8.2% |
| 2023 | -11.7% | +2.2% |
| 2024 | -3.5% | +21.7% |
| 2025 | +7.4% | +9.5% |
| 2026 | +6.9% | +4.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AWK and SO good diversifiers for each other?
To a limited degree. At 0.63 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 AWK and SO?
The AWK/SO correlation stands at 0.63 on a 3-year window (1 year: 0.49, 5 years: 0.68), computed from weekly returns as of 2026-08-27.
Is SO a good diversifier for AWK?
To a limited degree. At 0.63 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 0.63 mean?
On the −1 to +1 scale, 0.63 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.
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Related comparisons
Hubs: AWK correlations · SO correlations
