NEE vs SO: Correlation
Measured on weekly returns over the past three years, NextEra Energy (NEE) and Southern Company (SO) carry a correlation of 0.58, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NEE and SO?
On 3 years of weekly data the NEE/SO correlation comes out at 0.58, moderate. The relationship has been stable: the 1-year correlation (0.60) sits close to the 3-year figure. The 5-year figure is 0.56, and annualized covariance runs at 254.5 %².
Among the 29 assets we track against NEE, SO ranks #6 by 3-year correlation. The last year tells two different stories: NEE led by 17.6 percentage points, +16.2% for NEE against -1.4% for SO. Across three years, the rolling one-year figure varied moderately, from 0.28 to 0.74. Risk is not evenly split, since NEE carries 1.6 times the volatility of the other side.
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 SO: side by side
| NEE (NextEra Energy) | SO (Southern Company) | |
|---|---|---|
| 1-year return | +16.2% | -1.4% |
| 5-year return | +12.9% | +62.6% |
| Volatility (ann.) | 26.5% | 16.5% |
| Beta vs S&P 500 | 0.28 | -0.02 |
| Max drawdown (3Y) | -28.8% | -15.0% |
| Market cap | $174.1B | $102.4B |
| P/E (trailing) | 18.9 | 21.7 |
| Dividend yield | 2.82% | 3.32% |
| Sector / category | Utilities | Utilities |
Year-by-year returns
| Year | NEE | SO |
|---|---|---|
| 2022 | -8.5% | +8.2% |
| 2023 | -25.3% | +2.2% |
| 2024 | +21.5% | +21.7% |
| 2025 | +15.5% | +9.5% |
| 2026 | +5.4% | +4.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NEE and SO good diversifiers for each other?
Only partially. A correlation of 0.58 means NEE and SO share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between NEE and SO?
Using weekly returns as of 2026-08-27: 0.58 over 3 years, with 0.60 over the last year and 0.56 over 5 years.
Is SO a good diversifier for NEE?
Only partially. A correlation of 0.58 means NEE and SO share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.58 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.
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Related comparisons
Hubs: NEE correlations · SO correlations
