CMS Energy Correlations

CMS Stock

USD 69.21 0.69 1.01%

The current 90-days correlation between CMS Energy and Entergy is 0.26 (i.e., Modest diversification). The correlation of CMS Energy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

CMS Energy Correlation With Market

Significant diversification

The correlation between CMS Energy and DJI is 0.02 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding CMS Energy and DJI in the same portfolio, assuming nothing else is changed.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in CMS Energy. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population.

For more information on how to buy CMS Stock please use our How to Invest in CMS Energy guide.

Moving together with CMS Stock

0.76	D	Dominion Energy	Pair Corr
0.76	ED	Consolidated Edison	Pair Corr
0.9	SO	Southern	Pair Corr
0.7	CMS-PB	Consumers Energy	Pair Corr
0.7	CMS-PC	CMS Energy	Pair Corr
0.86	DTE	DTE Energy	Pair Corr
0.72	DUK	Duke Energy	Pair Corr
0.94	EXC	Exelon	Pair Corr
0.75	LNT	Alliant Energy Corp	Pair Corr
0.77	NEE	Nextera Energy Aggressive Push	Pair Corr
0.7	NWE	NorthWestern	Pair Corr
0.72	PEG	Public Service Enterprise	Pair Corr

Moving against CMS Stock

0.43	HE	Hawaiian Electric	Pair Corr
0.52	VSTEW	Vast Renewables	Pair Corr
0.31	KEP	Korea Electric Power	Pair Corr

Related Correlations Analysis

	ETR	AEE	CNP	LNT	PNW	MGEE	EVRG	DTE	PNM
ETR		0.89	0.82	0.45	0.55	0.83	0.73	-0.3	0.87	ETR
AEE	0.89		0.94	0.72	0.57	0.86	0.81	-0.03	0.8	AEE
CNP	0.82	0.94		0.72	0.41	0.73	0.71	0.09	0.78	CNP
LNT	0.45	0.72	0.72		0.37	0.49	0.68	0.49	0.46	LNT
PNW	0.55	0.57	0.41	0.37		0.78	0.86	-0.34	0.55	PNW
MGEE	0.83	0.86	0.73	0.49	0.78		0.85	-0.42	0.73	MGEE
EVRG	0.73	0.81	0.71	0.68	0.86	0.85		-0.11	0.74	EVRG
DTE	-0.3	-0.03	0.09	0.49	-0.34	-0.42	-0.11		-0.22	DTE
PNM	0.87	0.8	0.78	0.46	0.55	0.73	0.74	-0.22		PNM
	ETR	AEE	CNP	LNT	PNW	MGEE	EVRG	DTE	PNM

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

CNP	+ 0.94	AEE
AEE	+ 0.89	ETR
PNM	+ 0.87	ETR
MGEE	+ 0.86	AEE
EVRG	+ 0.86	PNW
EVRG	+ 0.85	MGEE

High negative correlations

DTE	- 0.42	MGEE
DTE	- 0.34	PNW
DTE	- 0.3	ETR
PNM	- 0.22	DTE
DTE	- 0.11	EVRG
DTE	- 0.03	AEE

Risk-Adjusted Indicators

There is a big difference between CMS Stock performing well and CMS Energy Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze CMS Energy's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
ETR	0.97	0.41	0.20	(1.40)	1.01	(1.21)	2.07	(1.52)	21.62
AEE	0.81	0.17	0.11	1.29	0.64	(0.97)	1.91	(1.39)	6.03
CNP	0.92	0.31	0.18	(2.55)	0.93	(1.06)	2.70	(1.73)	6.28
LNT	0.89	0.13	0.04	(6.83)	1.02	(0.99)	2.04	(1.89)	5.81
PNW	0.79	0.06	0.01	0.24	0.80	(0.85)	1.91	(1.48)	4.99
MGEE	1.10	0.17	0.17	0.22	0.87	(1.30)	2.95	(1.77)	9.44
EVRG	0.67	0.14	0.08	1.02	0.65	(0.71)	1.53	(1.23)	3.29
DTE	0.78	0.00	(0.06)	(0.04)	1.42	(0.62)	1.43	(2.13)	5.21
PNM	0.77	0.31	0.21	(1.12)	0.66	(0.97)	1.80	(1.13)	7.12

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