Cummins Correlations

C1MI34 Stock  BRL 547.05  0.00  0.00%   
The current 90-days correlation between Cummins and Eaton plc is 0.06 (i.e., Significant diversification). The correlation of Cummins 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.

Cummins Correlation With Market

Good diversification

The correlation between Cummins and DJI is -0.07 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Cummins and DJI in the same portfolio, assuming nothing else is changed.
  
The ability to find closely correlated positions to Cummins could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cummins when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Cummins - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Cummins to buy it.

Moving together with Cummins Stock

  0.82HONB34 Honeywell InternationalPairCorr
  0.69E1TN34 Eaton plcPairCorr
  0.63R1OP34 Roper Technologies,PairCorr
  0.75A1ME34 AMETEK,PairCorr
  0.79ARNC34 Howmet AerospacePairCorr
  0.73TMCO34 Toyota MotorPairCorr
  0.89SNEC34 Sony Group SplitPairCorr
  0.85TSMC34 Taiwan SemiconductorPairCorr
  0.91AAPL34 Apple IncPairCorr

Moving against Cummins Stock

  0.81ITUB4 Ita Unibanco HoldingPairCorr
  0.8ITUB3 Ita Unibanco HoldingPairCorr
  0.6INEP4 Inepar SA IndstriaPairCorr
  0.58BABA34 Alibaba Group HoldingPairCorr
  0.42HOND34 Honda MotorPairCorr

Related Correlations Analysis

Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

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   
ARNC34A1ME34
A1ME34E1TN34
ARNC34E1TN34
AERI3ARNC34
INEP4AERI3
AERI3A1ME34
  
High negative correlations   
INEP4ARNC34
INEP4A1ME34
INEP4E1TN34
AERI3E1TN34

Risk-Adjusted Indicators

There is a big difference between Cummins Stock performing well and Cummins 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 Cummins' 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.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Cummins without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

Did you try this?

Run Idea Breakdown Now

   

Idea Breakdown

Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
All  Next Launch Module