CenterPoint Energy Correlations

CNP Stock

USD 38.67 0.11 0.28%

The current 90-days correlation between CenterPoint Energy and DTE Energy is 0.79 (i.e., Poor diversification). The correlation of CenterPoint Energy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

CenterPoint Energy Correlation With Market

Very weak diversification

The correlation between CenterPoint Energy and DJI is 0.48 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding CenterPoint Energy and DJI in the same portfolio, assuming nothing else is changed.

Build AI portfolio with CenterPoint Stock

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in CenterPoint Energy. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

To learn how to invest in CenterPoint Stock, please use our How to Invest in CenterPoint Energy guide.

Moving together with CenterPoint Stock

0.95	ED	Consolidated Edison	Pair Corr
0.8	SO	Southern	Pair Corr
0.86	ELPC	Companhia Paranaense Earnings Call Shortly	Pair Corr
0.74	EVRG	Evergy, Earnings Call Shortly	Pair Corr
0.78	AEP	American Electric Power Sell-off Trend	Pair Corr
0.77	CMS	CMS Energy	Pair Corr
0.83	DTE	DTE Energy	Pair Corr
0.88	DUK	Duke Energy Earnings Call Shortly	Pair Corr
0.75	EIX	Edison International	Pair Corr
0.88	ELP	Companhia Paranaense Earnings Call Shortly	Pair Corr
0.91	EXC	Exelon	Pair Corr
0.93	FTS	Fortis Inc	Pair Corr
0.71	GNE	Genie Energy Earnings Call Shortly	Pair Corr
0.84	IDA	IDACORP	Pair Corr
0.74	KEP	Korea Electric Power	Pair Corr
0.85	NGG	National Grid PLC	Pair Corr
0.91	NWE	NorthWestern	Pair Corr
0.74	OGE	OGE Energy	Pair Corr
0.87	PCG	PGE Corp	Pair Corr
0.85	PNW	Pinnacle West Capital Sell-off Trend	Pair Corr
0.86	PPL	PPL Corporation	Pair Corr
0.86	WEC	WEC Energy Group	Pair Corr
0.7	XEL	Xcel Energy	Pair Corr

Moving against CenterPoint Stock

0.83	CMS-PC	CMS Energy	Pair Corr
0.75	EDN	Empresa Distribuidora	Pair Corr
0.8	PCG-PI	Pacific Gas Potential Growth	Pair Corr
0.79	VSTEW	Vast Renewables	Pair Corr
0.71	PCG-PC	Pacific Gas	Pair Corr
0.58	SCE-PL	SCE Trust VI	Pair Corr
0.48	TLN	Talen Energy	Pair Corr
0.46	SCE-PJ	SCE Trust IV	Pair Corr
0.44	ETI-P	Entergy Texas	Pair Corr
0.43	SCE-PG	SCE Trust II	Pair Corr
0.42	SCE-PK	SCE Trust V	Pair Corr
0.35	NEE	Nextera Energy	Pair Corr

Related Correlations Analysis

	DTE	LNT	AEE	PNW	FE	EIX	PEG	CMS	MGEE	EVRG
DTE		0.74	0.85	0.97	0.29	0.65	-0.07	0.96	0.68	0.9	DTE
LNT	0.74		0.86	0.7	0.02	0.29	0.0	0.79	0.82	0.73	LNT
AEE	0.85	0.86		0.87	0.25	0.43	0.14	0.86	0.8	0.9	AEE
PNW	0.97	0.7	0.87		0.4	0.67	-0.01	0.94	0.7	0.93	PNW
FE	0.29	0.02	0.25	0.4		0.11	0.36	0.24	0.27	0.51	FE
EIX	0.65	0.29	0.43	0.67	0.11		-0.13	0.59	0.35	0.46	EIX
PEG	-0.07	0.0	0.14	-0.01	0.36	-0.13		-0.17	0.23	0.17	PEG
CMS	0.96	0.79	0.86	0.94	0.24	0.59	-0.17		0.68	0.87	CMS
MGEE	0.68	0.82	0.8	0.7	0.27	0.35	0.23	0.68		0.72	MGEE
EVRG	0.9	0.73	0.9	0.93	0.51	0.46	0.17	0.87	0.72		EVRG
	DTE	LNT	AEE	PNW	FE	EIX	PEG	CMS	MGEE	EVRG

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

PNW	+ 0.97	DTE
CMS	+ 0.96	DTE
CMS	+ 0.94	PNW
EVRG	+ 0.93	PNW
EVRG	+ 0.9	DTE
EVRG	+ 0.9	AEE

High negative correlations

CMS	- 0.17	PEG
PEG	- 0.13	EIX
PEG	- 0.07	DTE
PEG	- 0.01	PNW
PEG	- 0.0	LNT

Risk-Adjusted Indicators

There is a big difference between CenterPoint Stock performing well and CenterPoint Energy Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze CenterPoint Energy's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
DTE	0.96	0.25	0.19	0.42	1.41	(0.94)	2.45	(2.44)	8.43
LNT	0.94	0.11	0.12	0.12	1.59	(0.88)	2.01	(2.49)	7.74
AEE	0.93	0.15	0.14	0.22	1.49	(0.88)	2.08	(1.65)	7.89
PNW	0.93	0.20	0.21	0.36	1.13	(0.98)	1.90	(1.63)	6.39
FE	1.28	0.13	0.10	0.49	2.29	(1.28)	2.43	(2.40)	12.68
EIX	1.74	0.04	0.00	(0.09)	0.00	0.00	3.60	(2.88)	12.28
PEG	1.00	0.07	0.00	(0.04)	0.00	0.00	2.18	(2.69)	9.05
CMS	0.99	0.18	0.19	0.59	1.36	(0.95)	1.80	(2.41)	5.74
MGEE	0.99	0.09	0.14	0.10	1.20	(1.00)	1.90	(1.93)	5.92
EVRG	0.86	0.17	0.17	0.38	1.35	(0.82)	1.68	(2.08)	6.33

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