Zeros in positive definite correlation matrices arise frequently in probability and statistics, and are intimately related to the notion of stochastic independence. The question of when zeros (i.e., sparsity) in a positive definite matrix A are preserved in its Cholesky decomposition, and vice versa, was addressed by Paulsen et al. [V.I. Paulsen, S.C. Power, R.R. Smith, Schur products and matrix completions, J. Funct. Anal. 85 (1989) 151–178]. In particular, they prove that for the pattern of zeros in A to be retained in the Cholesky decomposition of A, the pattern of zeros in A has to necessarily correspond to a chordal (or decomposable) graph associated with a specific type of vertex ordering. This result therefore also yields a characterization of chordal graphs in terms of sparse positive definite matrices, and has proved to be extremely useful in probabilistic and statistical analysis of Markov random fields. Now, consider a positive definite matrix A and its Cholesky decomposition given by A=LDLT, where L is lower triangular with unit diagonal entries, and D a diagonal matrix with positive entries. In this paper, we prove that a necessary and sufficient condition for zeros (i.e., sparsity) in a positive definite matrix A to be preserved in its associated Cholesky matrix L, and in addition also preserved in the inverse of the Cholesky matrix L-1, is that the pattern of zeros corresponds to a co-chordal or homogeneous graph associated with a specific type of vertex ordering. We proceed to provide a second characterization of this class of graphs in terms of determinants of submatrices that correspond to cliques in the graph. These results add to the growing body of literature in the field of sparse matrix decompositions, and also prove to be critical ingredients in the probabilistic analysis of an important class of Markov random fields.