ED vs SO: Correlation
Consolidated Edison (ED) and Southern Company (SO) show a very strong relationship: their 3-year correlation of weekly returns is 0.80.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ED and SO?
On 3 years of weekly data the ED/SO correlation comes out at 0.80, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.84) sits close to the 3-year figure. The 5-year figure is 0.84, and annualized covariance runs at 219.7 %².
SO is one of the assets that tracks ED most closely: it ranks #3 out of the 105 assets we track against ED. The trailing year gives ED the advantage: +10.2% versus -1.4%, a 11.6-point spread. On a rolling one-year basis the correlation drifted between 0.60 and 0.90, 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.
ED vs SO: side by side
| ED (Consolidated Edison) | SO (Southern Company) | |
|---|---|---|
| 1-year return | +10.2% | -1.4% |
| 5-year return | +67.5% | +62.6% |
| Volatility (ann.) | 16.5% | 16.5% |
| Beta vs S&P 500 | -0.21 | -0.02 |
| Max drawdown (3Y) | -17.4% | -15.0% |
| Market cap | $39.5B | $102.4B |
| P/E (trailing) | 17.5 | 21.7 |
| Dividend yield | 3.22% | 3.32% |
| Sector / category | Utilities | Utilities |
Year-by-year returns
| Year | ED | SO |
|---|---|---|
| 2022 | +15.7% | +8.2% |
| 2023 | -1.1% | +2.2% |
| 2024 | +1.5% | +21.7% |
| 2025 | +15.1% | +9.5% |
| 2026 | +10.1% | +4.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ED and SO good diversifiers for each other?
No: a correlation of 0.80 means ED and SO tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between ED and SO?
The ED/SO correlation stands at 0.80 on a 3-year window (1 year: 0.84, 5 years: 0.84), computed from weekly returns as of 2026-08-27.
Is SO a good diversifier for ED?
No: a correlation of 0.80 means ED and SO tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.80 mean?
On the −1 to +1 scale, 0.80 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: ED correlations · SO correlations
