CMS vs XLU: Correlation
How closely do CMS Energy (CMS) and Utilities Select Sector SPDR Fund (XLU) 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 XLU?
Across a 3-year window, the weekly returns of CMS and XLU correlate at 0.81, very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.88 lands near the 3-year figure. Stretching to 5 years gives 0.87, with an annualized covariance of 206.0 %².
Among the 42 assets we track against CMS, XLU ranks #7 by 3-year correlation. Over the last 12 months XLU came out ahead by 6.5 percentage points (-2.4% against +4.1%). The rolling one-year correlation moved between 0.53 and 0.93 over the past three years, a moderate range.
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 XLU: side by side
| CMS (CMS Energy) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -2.4% | +4.1% |
| 5-year return | +23.8% | +46.3% |
| Volatility (ann.) | 16.2% | 15.8% |
| Beta vs S&P 500 | -0.01 | 0.26 |
| Max drawdown (3Y) | -13.2% | -13.1% |
| Market cap | $21.4B | – |
| P/E (trailing) | 20.8 | – |
| Dividend yield | 3.21% | 2.70% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $23.1B |
| Sector / category | Utilities | Sector ETF |
XLU is an Utilities fund from State Street Investment Management: $23.1B under management, 31 holdings, a 0.08% expense ratio, a 2.70% trailing dividend yield.
Year-by-year returns
| Year | CMS | XLU |
|---|---|---|
| 2022 | +0.2% | +1.4% |
| 2023 | -5.2% | -7.2% |
| 2024 | +18.6% | +23.3% |
| 2025 | +8.1% | +16.0% |
| 2026 | +0.0% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLU holds CMS at a 1.58% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are CMS and XLU 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 XLU?
As of 2026-08-27, the correlation of weekly returns between CMS and XLU is 0.81 over 3 years, 0.88 over 1 year and 0.87 over 5 years.
Is XLU 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?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/cms-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/cms-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: CMS correlations · XLU correlations
