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AWK vs CMS: Correlation

How closely do American Water Works (AWK) and CMS Energy (CMS) trade together? Their weekly returns over three years give a correlation of 0.60, which is strong.

Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology

Correlation (3Y)
0.60
strong
Correlation (1Y)
0.53
last 12 months
Correlation (5Y)
0.70
long-run
Ann. covariance
200.3
%² · weekly, annualized

How correlated are AWK and CMS?

Over the past 3 years, AWK and CMS moved with a correlation of 0.60, which is strong. The relationship has been stable: the 1-year correlation (0.53) sits close to the 3-year figure. Over 5 years the correlation is 0.70, and the annualized covariance of weekly returns is 200.3 %².

Within AWK's tracked universe of 49 assets, CMS comes in at #12 by 3-year correlation. Their 12-month results are close: -3.0% for AWK against -2.4% for CMS. The rolling one-year correlation moved between 0.42 and 0.80 over the past three years, a moderate range.

+1.0+0.50-0.5-1.020232026-08-27
One-year correlation, rolled weekly across the last three years.
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.

AWK vs CMS: side by side

AWK (American Water Works)CMS (CMS Energy)
1-year return-3.0%-2.4%
5-year return-16.6%+23.8%
Volatility (ann.)20.7%16.2%
Beta vs S&P 500-0.11-0.01
Max drawdown (3Y)-18.8%-13.2%
Market cap$27.2B$21.4B
P/E (trailing)23.720.8
Dividend yield2.46%3.21%
Sector / categoryUtilitiesUtilities
Lower P/E: CMS 20.8 vs 23.7Higher yield: CMS 3.21% vs 2.46%Smaller drawdown: CMS -13.2% vs -18.8%Higher 5y return: CMS +23.8% vs -16.6%
-13%0%+13%2025-09-052026-08-27
Both assets over the last year, indexed to 100 at the starting week. ■ AWK · ■ CMS

Year-by-year returns

YearAWKCMS
2022-17.9%+0.2%
2023-11.7%-5.2%
2024-3.5%+18.6%
2025+7.4%+8.1%
2026+6.9%+0.0%

Calendar-year price returns; the current year is year-to-date as of the data date above.

Are AWK and CMS good diversifiers for each other?

Only partially. A correlation of 0.60 means AWK and CMS 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 AWK and CMS?

As of 2026-08-27, the correlation of weekly returns between AWK and CMS is 0.60 over 3 years, 0.53 over 1 year and 0.70 over 5 years.

Is CMS a good diversifier for AWK?

Only partially. A correlation of 0.60 means AWK and CMS share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.

What does a correlation of 0.60 mean?

A reading of 0.60 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.

Use this data

JSON API · no key required
$ curl https://www.pairbook.io/api/v1/pairs/awk-vs-cms.json

AWK vs CMS: 3-year weekly correlation 0.60AWK vs CMS0.60

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Hubs: AWK correlations · CMS correlations