BW vs CMI: Correlation
How closely do Babcock & Wilcox Enterprises, Inc. (BW) and Cummins (CMI) trade together? Their weekly returns over three years give a correlation of 0.41, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BW and CMI?
On 3 years of weekly data the BW/CMI correlation comes out at 0.41, moderate. The link has loosened recently: the 1-year correlation (0.25) runs below the 3-year figure (0.41). The 5-year figure is 0.37, and annualized covariance runs at 1454.6 %².
In BW's tracked universe of 10 assets, CMI sits right near the top at #2. The last year tells two different stories: BW led by 272.3 percentage points, +317.4% for BW against +45.1% for CMI. Note the risk asymmetry: BW runs 5.3 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
BW vs CMI: side by side
| BW (Babcock & Wilcox Enterprises, Inc.) | CMI (Cummins) | |
|---|---|---|
| 1-year return | +317.4% | +45.1% |
| 5-year return | +5.9% | +169.6% |
| Volatility (ann.) | 137.1% | 25.9% |
| Beta vs S&P 500 | 3.26 | 1.05 |
| Max drawdown (3Y) | -95.2% | -30.5% |
| Market cap | $1.1B | $79.0B |
| P/E (trailing) | – | 29.6 |
| Dividend yield | 0.00% | 1.38% |
| Sector / category | US Listed | Industrials |
Year-by-year returns
| Year | BW | CMI |
|---|---|---|
| 2022 | -36.0% | +14.1% |
| 2023 | -74.7% | +1.7% |
| 2024 | +12.3% | +48.9% |
| 2025 | +286.6% | +49.4% |
| 2026 | +21.1% | +13.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BW and CMI good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.41 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between BW and CMI?
The BW/CMI correlation stands at 0.41 on a 3-year window (1 year: 0.25, 5 years: 0.37), computed from weekly returns as of 2026-08-27.
Is CMI a good diversifier for BW?
Yes, to a useful degree: a correlation of 0.41 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.41 mean?
A reading of 0.41 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/bw-vs-cmi.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/bw-vs-cmi/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: BW correlations · CMI correlations
