CMS vs XEL: Correlation
CMS Energy (CMS) and Xcel Energy (XEL) show a strong relationship: their 3-year correlation of weekly returns is 0.62.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CMS and XEL?
Across a 3-year window, the weekly returns of CMS and XEL correlate at 0.62, strong. The past 12 months show a tighter link (0.84) than the 3-year average (0.62). Stretching to 5 years gives 0.75, with an annualized covariance of 207.9 %².
Within CMS's tracked universe of 42 assets, XEL comes in at #23 by 3-year correlation. The trailing year gives XEL the advantage: -2.4% versus +9.2%, a 11.6-point spread. The relationship is regime-dependent: the rolling one-year correlation swung between 0.38 and 0.89 over the past three years, so this pair behaves very differently depending on the market environment.
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 XEL: side by side
| CMS (CMS Energy) | XEL (Xcel Energy) | |
|---|---|---|
| 1-year return | -2.4% | +9.2% |
| 5-year return | +23.8% | +31.1% |
| Volatility (ann.) | 16.2% | 20.7% |
| Beta vs S&P 500 | -0.01 | 0.09 |
| Max drawdown (3Y) | -13.2% | -24.0% |
| Market cap | $21.4B | $48.2B |
| P/E (trailing) | 20.8 | 21.3 |
| Dividend yield | 3.21% | 2.99% |
| Sector / category | Utilities | Utilities |
Year-by-year returns
| Year | CMS | XEL |
|---|---|---|
| 2022 | +0.2% | +6.4% |
| 2023 | -5.2% | -8.7% |
| 2024 | +18.6% | +12.3% |
| 2025 | +8.1% | +13.9% |
| 2026 | +0.0% | +6.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CMS and XEL good diversifiers for each other?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between CMS and XEL?
As of 2026-08-27, the correlation of weekly returns between CMS and XEL is 0.62 over 3 years, 0.84 over 1 year and 0.75 over 5 years.
Is XEL a good diversifier for CMS?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.62 mean?
On the −1 to +1 scale, 0.62 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/cms-vs-xel.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/cms-vs-xel/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: CMS correlations · XEL correlations
