CAT vs CMI: Correlation
Measured on weekly returns over the past three years, Caterpillar Inc. (CAT) and Cummins (CMI) carry a correlation of 0.63, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAT and CMI?
On 3 years of weekly data the CAT/CMI correlation comes out at 0.63, strong. Little has changed lately, as the 1-year reading of 0.62 lands near the 3-year figure. The 5-year figure is 0.65, and annualized covariance runs at 480.4 %².
Few assets follow CAT as closely as CMI, which ranks #3 of 36 tracked partners. Correlation aside, the last 12 months split them widely, with CAT ahead by 45.4 points (+90.5% versus +45.1%). The rolling one-year correlation stayed in a tight band between 0.45 and 0.70 over the past three years, which points to a structural rather than episodic relationship.
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.
CAT vs CMI: side by side
| CAT (Caterpillar Inc.) | CMI (Cummins) | |
|---|---|---|
| 1-year return | +90.5% | +45.1% |
| 5-year return | +321.1% | +169.6% |
| Volatility (ann.) | 29.4% | 25.9% |
| Beta vs S&P 500 | 1.03 | 1.05 |
| Max drawdown (3Y) | -34.0% | -30.5% |
| Market cap | $375.6B | $79.0B |
| P/E (trailing) | 35.3 | 29.6 |
| Dividend yield | 0.75% | 1.38% |
| Sector / category | Industrials | Industrials |
Year-by-year returns
| Year | CAT | CMI |
|---|---|---|
| 2022 | +18.6% | +14.1% |
| 2023 | +25.9% | +1.7% |
| 2024 | +24.7% | +48.9% |
| 2025 | +60.3% | +49.4% |
| 2026 | +43.5% | +13.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAT and CMI good diversifiers for each other?
Somewhat, no more. With 0.63 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between CAT and CMI?
The CAT/CMI correlation stands at 0.63 on a 3-year window (1 year: 0.62, 5 years: 0.65), computed from weekly returns as of 2026-08-27.
Is CMI a good diversifier for CAT?
Somewhat, no more. With 0.63 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.63 mean?
A reading of 0.63 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/cat-vs-cmi.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/cat-vs-cmi/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: CAT correlations · CMI correlations
