PNW vs WEC: Correlation
How closely do Pinnacle West Capital (PNW) and WEC Energy Group (WEC) trade together? Their weekly returns over three years give a correlation of 0.77, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PNW and WEC?
Across a 3-year window, the weekly returns of PNW and WEC correlate at 0.77, strong. The relationship has been stable: the 1-year correlation (0.80) sits close to the 3-year figure. Stretching to 5 years gives 0.77, with an annualized covariance of 237.3 %².
By 3-year correlation, WEC places #4 of the 36 assets tracked against PNW. On 12-month performance PNW holds a 10.3-point edge, +12.4% against +2.1%. The rolling one-year correlation stayed in a tight band between 0.66 and 0.82 over the past three years, which points to a structural rather than episodic relationship.
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.
PNW vs WEC: side by side
| PNW (Pinnacle West Capital) | WEC (WEC Energy Group) | |
|---|---|---|
| 1-year return | +12.4% | +2.1% |
| 5-year return | +59.3% | +32.7% |
| Volatility (ann.) | 18.2% | 16.9% |
| Beta vs S&P 500 | 0.09 | 0.02 |
| Max drawdown (3Y) | -14.4% | -11.6% |
| Market cap | $11.9B | $34.6B |
| P/E (trailing) | 18.8 | 20.6 |
| Dividend yield | 3.67% | 3.43% |
| Sector / category | Utilities | Utilities |
Year-by-year returns
| Year | PNW | WEC |
|---|---|---|
| 2022 | +13.0% | -0.5% |
| 2023 | -1.2% | -7.0% |
| 2024 | +23.5% | +16.1% |
| 2025 | +8.9% | +16.0% |
| 2026 | +13.5% | +3.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PNW and WEC good diversifiers for each other?
Somewhat, no more. With 0.77 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between PNW and WEC?
The PNW/WEC correlation stands at 0.77 on a 3-year window (1 year: 0.80, 5 years: 0.77), computed from weekly returns as of 2026-08-27.
Is WEC a good diversifier for PNW?
Somewhat, no more. With 0.77 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.77 mean?
On the −1 to +1 scale, 0.77 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: PNW correlations · WEC correlations
