Cummins Correlations

CMI Stock

USD 326.15 4.45 1.38%

The current 90-days correlation between Cummins and Illinois Tool Works is 0.32 (i.e., Weak 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

Very weak diversification

The correlation between Cummins and DJI is 0.49 (i.e., Very weak 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.

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

For more detail on how to invest in Cummins Stock please use our How to Invest in Cummins guide.

Moving together with Cummins Stock

0.65	CR	Crane Company	Pair Corr
0.72	HI	Hillenbrand	Pair Corr
0.82	PH	Parker Hannifin	Pair Corr
0.68	AME	Ametek Inc	Pair Corr
0.82	DOV	Dover	Pair Corr
0.65	EMR	Emerson Electric	Pair Corr
0.68	FLS	Flowserve	Pair Corr
0.75	ITT	ITT Inc	Pair Corr
0.62	KAI	Kadant Inc	Pair Corr
0.65	NPO	Enpro Industries	Pair Corr
0.7	ROK	Rockwell Automation	Pair Corr
0.61	SMR	Nuscale Power Corp	Pair Corr

Related Correlations Analysis

	ITW	DOV	ETN	PH	EMR	ROK	IR	PNR	AOS
ITW		0.45	0.04	0.4	0.39	0.51	0.37	0.23	0.47	ITW
DOV	0.45		0.2	0.97	0.75	0.57	0.45	0.49	0.04	DOV
ETN	0.04	0.2		0.3	0.67	0.39	0.83	0.87	0.71	ETN
PH	0.4	0.97	0.3		0.79	0.56	0.52	0.57	0.1	PH
EMR	0.39	0.75	0.67	0.79		0.62	0.83	0.89	0.47	EMR
ROK	0.51	0.57	0.39	0.56	0.62		0.46	0.52	0.29	ROK
IR	0.37	0.45	0.83	0.52	0.83	0.46		0.92	0.68	IR
PNR	0.23	0.49	0.87	0.57	0.89	0.52	0.92		0.66	PNR
AOS	0.47	0.04	0.71	0.1	0.47	0.29	0.68	0.66		AOS
	ITW	DOV	ETN	PH	EMR	ROK	IR	PNR	AOS

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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.

	Mean Deviation	Jensen Alpha	Treynor Ratio	Potential Upside	Value @Risk	Maximum Drawdown
ITW	0.98	(0.02)	(0.13)	1.95	(2.48)	8.34
DOV	1.08	(0.03)	(0.13)	1.96	(2.86)	8.86
ETN	1.69	(0.22)	(0.35)	3.41	(3.54)	19.37
PH	1.26	(0.06)	(0.16)	2.27	(3.50)	10.15
EMR	1.23	(0.10)	(0.20)	2.13	(2.68)	9.68
ROK	1.31	(0.07)	(0.17)	2.01	(2.63)	16.50
IR	1.25	(0.21)	(0.30)	2.34	(2.57)	10.46
PNR	1.07	(0.24)	(0.35)	1.72	(2.61)	6.53
AOS	1.05	(0.05)	(0.20)	2.14	(2.36)	7.41

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Cummins Correlations

Cummins Correlation With Market

Very weak diversification

Moving together with Cummins Stock

Related Correlations Analysis

Risk-Adjusted Indicators

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