CenterPoint Energy Correlations

CNP Stock

USD 33.41 0.02 0.06%

The current 90-days correlation between CenterPoint Energy and DTE Energy is 0.58 (i.e., Very weak diversification). The correlation of CenterPoint 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.

CenterPoint Energy Correlation With Market

Weak diversification

The correlation between CenterPoint Energy and DJI is 0.33 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding CenterPoint 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 CenterPoint 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 board of governors.

To learn how to invest in CenterPoint Stock, please use our How to Invest in CenterPoint Energy guide.

Moving together with CenterPoint Stock

0.63	AEE	Ameren Corp Earnings Call This Week	Pair Corr
0.65	DTE	DTE Energy	Pair Corr
0.71	ETR	Entergy Earnings Call This Week	Pair Corr

Moving against CenterPoint Stock

0.61	GNE	Genie Energy	Pair Corr
0.51	EIX	Edison International Earnings Call This Week	Pair Corr
0.49	VSTE	Vast Renewables	Pair Corr
0.39	CMS-PC	CMS Energy	Pair Corr
0.37	CMS-PB	Consumers Energy	Pair Corr
0.64	PCG-PH	Pacific Gas	Pair Corr
0.56	SCE-PN	SCE Trust VIII	Pair Corr
0.55	SCE-PL	SCE Trust VI	Pair Corr
0.54	PCG	PGE Corp Earnings Call This Week	Pair Corr
0.52	SCE-PG	SCE Trust II	Pair Corr
0.51	SCE-PJ	SCE Trust IV	Pair Corr
0.49	MGEE	MGE Energy Earnings Call This Week	Pair Corr
0.44	SCE-PK	SCE Trust V	Pair Corr
0.41	POR	Portland General Electric	Pair Corr
0.34	PCG-PG	Pacific Gas	Pair Corr

Related Correlations Analysis

	DTE	LNT	AEE	PNW	FE	EIX	PEG	CMS	MGEE	EVRG
DTE		0.63	0.66	0.37	0.34	-0.19	0.29	0.75	-0.03	0.7	DTE
LNT	0.63		0.47	0.87	0.84	0.33	0.7	0.88	0.62	0.66	LNT
AEE	0.66	0.47		0.4	0.26	-0.63	0.01	0.57	-0.25	0.94	AEE
PNW	0.37	0.87	0.4		0.94	0.36	0.64	0.8	0.73	0.63	PNW
FE	0.34	0.84	0.26	0.94		0.5	0.68	0.79	0.8	0.5	FE
EIX	-0.19	0.33	-0.63	0.36	0.5		0.61	0.18	0.83	-0.41	EIX
PEG	0.29	0.7	0.01	0.64	0.68	0.61		0.56	0.69	0.15	PEG
CMS	0.75	0.88	0.57	0.8	0.79	0.18	0.56		0.5	0.73	CMS
MGEE	-0.03	0.62	-0.25	0.73	0.8	0.83	0.69	0.5		-0.01	MGEE
EVRG	0.7	0.66	0.94	0.63	0.5	-0.41	0.15	0.73	-0.01		EVRG
	DTE	LNT	AEE	PNW	FE	EIX	PEG	CMS	MGEE	EVRG

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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

EVRG	+ 0.94	AEE
FE	+ 0.94	PNW
CMS	+ 0.88	LNT
PNW	+ 0.87	LNT
FE	+ 0.84	LNT
MGEE	+ 0.83	EIX

High negative correlations

EIX	- 0.63	AEE
EVRG	- 0.41	EIX
MGEE	- 0.25	AEE
EIX	- 0.19	DTE
MGEE	- 0.03	DTE
EVRG	- 0.01	MGEE

Risk-Adjusted Indicators

There is a big difference between CenterPoint Stock performing well and CenterPoint 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 CenterPoint 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
DTE	0.78	0.15	0.11	0.38	1.11	(0.75)	1.75	(1.73)	4.93
LNT	0.83	0.10	0.09	0.25	0.99	(0.89)	2.09	(1.88)	6.88
AEE	0.90	0.13	0.13	0.29	0.86	(1.03)	1.92	(1.83)	6.01
PNW	0.83	(0.03)	0.00	(0.06)	0.00	0.00	1.56	(1.75)	4.71
FE	0.78	(0.05)	0.00	(0.13)	0.00	0.00	1.60	(1.75)	5.99
EIX	1.68	(0.72)	0.00	(2.54)	0.00	0.00	2.52	(6.33)	13.93
PEG	0.94	(0.03)	0.00	(0.09)	0.00	0.00	2.48	(2.34)	9.33
CMS	0.72	0.05	0.04	0.26	1.06	(0.66)	1.80	(1.82)	4.61
MGEE	1.15	(0.18)	0.00	(0.33)	0.00	0.00	2.34	(2.99)	11.49
EVRG	0.67	0.11	0.12	0.32	0.74	(0.69)	1.49	(1.59)	3.61

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