MGEE vs PNW: Correlation
How closely do MGE Energy Inc. (MGEE) and Pinnacle West Capital (PNW) trade together? Their weekly returns over three years give a correlation of 0.59, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MGEE and PNW?
On 3 years of weekly data the MGEE/PNW correlation comes out at 0.59, moderate. Little has changed lately, as the 1-year reading of 0.56 lands near the 3-year figure. The 5-year figure is 0.62, and annualized covariance runs at 293.1 %².
In MGEE's tracked universe of 15 assets, PNW sits right near the top at #3. Their recent paths diverged sharply: over the last 12 months PNW outperformed by 20.7 percentage points (-8.3% for MGEE against +12.4% for PNW). One caveat on sizing: MGEE is 1.5 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.
MGEE vs PNW: side by side
| MGEE (MGE Energy Inc.) | PNW (Pinnacle West Capital) | |
|---|---|---|
| 1-year return | -8.3% | +12.4% |
| 5-year return | +8.2% | +59.3% |
| Volatility (ann.) | 27.4% | 18.2% |
| Beta vs S&P 500 | 0.26 | 0.09 |
| Max drawdown (3Y) | -30.9% | -14.4% |
| Market cap | $3.0B | $11.9B |
| P/E (trailing) | 19.5 | 18.8 |
| Dividend yield | 2.39% | 3.67% |
| Sector / category | US Listed | Utilities |
Year-by-year returns
| Year | MGEE | PNW |
|---|---|---|
| 2022 | -12.6% | +13.0% |
| 2023 | +5.1% | -1.2% |
| 2024 | +32.8% | +23.5% |
| 2025 | -14.7% | +8.9% |
| 2026 | +1.1% | +13.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MGEE and PNW good diversifiers for each other?
To a limited degree. At 0.59 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 MGEE and PNW?
The MGEE/PNW correlation stands at 0.59 on a 3-year window (1 year: 0.56, 5 years: 0.62), computed from weekly returns as of 2026-08-27.
Is PNW a good diversifier for MGEE?
To a limited degree. At 0.59 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 0.59 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/mgee-vs-pnw.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/mgee-vs-pnw/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: MGEE correlations · PNW correlations
