When you reraised to $1.20 pre-flop you are declaring that you are willing to play for stacks with AK (it's over 10% of your stack). You can't really put CO on calling with 76 or 2 hearts. CO may have been set mining but doesn't really have the stack for it given your raise. Sometimes no matter what you do an opponent is going to get lucky in that you hit a great flop and they happen to hit a better flop. If CO happened to call with crap, hit a great flop, and then gets his implied odds
then it is just not your day. If he called and hit a set, once again not really your day given stack sizes. Your stacks are just not deep enough to avoid getting felted or at the least crippled. IMO, you maintain the aggression and push. You beat the range of hands your opponent most likely holds.