CMS vs ED: Correlation
How closely do CMS Energy (CMS) and Consolidated Edison (ED) trade together? Their weekly returns over three years give a correlation of 0.81, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CMS and ED?
Over the past 3 years, CMS and ED moved with a correlation of 0.81, which is very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.83) sits close to the 3-year figure. Over 5 years the correlation is 0.85, and the annualized covariance of weekly returns is 216.7 %².
Within CMS's tracked universe of 42 assets, ED comes in at #5 by 3-year correlation. The trailing year gives ED the advantage: -2.4% versus +10.2%, a 12.6-point spread. The rolling one-year correlation stayed in a tight band between 0.69 and 0.89 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.
CMS vs ED: side by side
| CMS (CMS Energy) | ED (Consolidated Edison) | |
|---|---|---|
| 1-year return | -2.4% | +10.2% |
| 5-year return | +23.8% | +67.5% |
| Volatility (ann.) | 16.2% | 16.5% |
| Beta vs S&P 500 | -0.01 | -0.21 |
| Max drawdown (3Y) | -13.2% | -17.4% |
| Market cap | $21.4B | $39.5B |
| P/E (trailing) | 20.8 | 17.5 |
| Dividend yield | 3.21% | 3.22% |
| Sector / category | Utilities | Utilities |
Year-by-year returns
| Year | CMS | ED |
|---|---|---|
| 2022 | +0.2% | +15.7% |
| 2023 | -5.2% | -1.1% |
| 2024 | +18.6% | +1.5% |
| 2025 | +8.1% | +15.1% |
| 2026 | +0.0% | +10.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CMS and ED good diversifiers for each other?
Not really. At 0.81, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between CMS and ED?
As of 2026-08-27, the correlation of weekly returns between CMS and ED is 0.81 over 3 years, 0.83 over 1 year and 0.85 over 5 years.
Is ED a good diversifier for CMS?
Not really. At 0.81, the two trade almost as one position, and owning both buys little extra protection.
What does a correlation of 0.81 mean?
A reading of 0.81 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
$ curl https://www.pairbook.io/api/v1/pairs/cms-vs-ed.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/cms-vs-ed/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: CMS correlations · ED correlations
