CMS vs FE: Correlation
How closely do CMS Energy (CMS) and FirstEnergy (FE) trade together? Their weekly returns over three years give a correlation of 0.72, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CMS and FE?
Over the past 3 years, CMS and FE moved with a correlation of 0.72, which is strong. The past 12 months show a tighter link (0.84) than the 3-year average (0.72). Over 5 years the correlation is 0.76, and the annualized covariance of weekly returns is 204.7 %².
Among the 42 assets we track against CMS, FE ranks #16 by 3-year correlation. Over the last 12 months FE came out ahead by 12.3 percentage points (-2.4% against +9.9%). On a rolling one-year basis the correlation drifted between 0.46 and 0.84, a moderate band.
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 FE: side by side
| CMS (CMS Energy) | FE (FirstEnergy) | |
|---|---|---|
| 1-year return | -2.4% | +9.9% |
| 5-year return | +23.8% | +46.7% |
| Volatility (ann.) | 16.2% | 17.6% |
| Beta vs S&P 500 | -0.01 | 0.04 |
| Max drawdown (3Y) | -13.2% | -14.7% |
| Market cap | $21.4B | $26.8B |
| P/E (trailing) | 20.8 | 25.0 |
| Dividend yield | 3.21% | 3.85% |
| Sector / category | Utilities | Utilities |
Year-by-year returns
| Year | CMS | FE |
|---|---|---|
| 2022 | +0.2% | +4.8% |
| 2023 | -5.2% | -8.9% |
| 2024 | +18.6% | +13.2% |
| 2025 | +8.1% | +17.3% |
| 2026 | +0.0% | +6.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CMS and FE good diversifiers for each other?
Only partially. A correlation of 0.72 means CMS and FE 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 CMS and FE?
Using weekly returns as of 2026-08-27: 0.72 over 3 years, with 0.84 over the last year and 0.76 over 5 years.
Is FE a good diversifier for CMS?
Only partially. A correlation of 0.72 means CMS and FE share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.72 mean?
On the −1 to +1 scale, 0.72 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: CMS correlations · FE correlations
