NEE vs PNW: Correlation
How closely do NextEra Energy (NEE) and Pinnacle West Capital (PNW) trade together? Their weekly returns over three years give a correlation of 0.55, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NEE and PNW?
Over the past 3 years, NEE and PNW moved with a correlation of 0.55, which is moderate. The relationship has been stable: the 1-year correlation (0.53) sits close to the 3-year figure. Over 5 years the correlation is 0.57, and the annualized covariance of weekly returns is 264.7 %².
By 3-year correlation, PNW places #15 of the 29 assets tracked against NEE. Neither side won the trailing year by much: +16.2% against +12.4%. The rolling one-year correlation moved between 0.42 and 0.68 over the past three years, a moderate range.
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.
NEE vs PNW: side by side
| NEE (NextEra Energy) | PNW (Pinnacle West Capital) | |
|---|---|---|
| 1-year return | +16.2% | +12.4% |
| 5-year return | +12.9% | +59.3% |
| Volatility (ann.) | 26.5% | 18.2% |
| Beta vs S&P 500 | 0.28 | 0.09 |
| Max drawdown (3Y) | -28.8% | -14.4% |
| Market cap | $174.1B | $11.9B |
| P/E (trailing) | 18.9 | 18.8 |
| Dividend yield | 2.82% | 3.67% |
| Sector / category | Utilities | Utilities |
Year-by-year returns
| Year | NEE | PNW |
|---|---|---|
| 2022 | -8.5% | +13.0% |
| 2023 | -25.3% | -1.2% |
| 2024 | +21.5% | +23.5% |
| 2025 | +15.5% | +8.9% |
| 2026 | +5.4% | +13.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NEE and PNW good diversifiers for each other?
To a limited degree. At 0.55 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 NEE and PNW?
The NEE/PNW correlation stands at 0.55 on a 3-year window (1 year: 0.53, 5 years: 0.57), computed from weekly returns as of 2026-08-27.
Is PNW a good diversifier for NEE?
To a limited degree. At 0.55 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 0.55 mean?
On the −1 to +1 scale, 0.55 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/nee-vs-pnw.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/nee-vs-pnw/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: NEE correlations · PNW correlations
