CMI vs VT: Correlation
Measured on weekly returns over the past three years, Cummins (CMI) and Vanguard Total World Stock ETF (VT) carry a correlation of 0.60, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CMI and VT?
On 3 years of weekly data the CMI/VT correlation comes out at 0.60, strong. The past 12 months show a weaker link (0.45) than the 3-year average (0.60). The 5-year figure is 0.63, and annualized covariance runs at 215.2 %².
Within CMI's tracked universe of 36 assets, VT comes in at #13 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months CMI outperformed by 22.4 percentage points (+45.1% for CMI against +22.7% for VT). The rolling one-year correlation moved between 0.44 and 0.80 over the past three years, a moderate range. One caveat on sizing: CMI is 1.9 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
CMI vs VT: side by side
| CMI (Cummins) | VT (Vanguard Total World Stock ETF) | |
|---|---|---|
| 1-year return | +45.1% | +22.7% |
| 5-year return | +169.6% | +67.7% |
| Volatility (ann.) | 25.9% | 13.9% |
| Beta vs S&P 500 | 1.05 | 0.92 |
| Max drawdown (3Y) | -30.5% | -16.5% |
| Market cap | $79.0B | – |
| P/E (trailing) | 29.6 | – |
| Dividend yield | 1.38% | 1.59% |
| Expense ratio | – | 0.06% |
| Assets under management | – | $97.9B |
| Sector / category | Industrials | ETF · Global |
VT is a Global Large-Stock Blend fund from Vanguard: $97.9B under management, 5308 holdings, a 0.06% expense ratio, a 1.59% trailing dividend yield.
Year-by-year returns
| Year | CMI | VT |
|---|---|---|
| 2022 | +14.1% | -18.0% |
| 2023 | +1.7% | +22.0% |
| 2024 | +48.9% | +16.5% |
| 2025 | +49.4% | +22.4% |
| 2026 | +13.6% | +15.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that VT holds CMI at a 0.08% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are CMI and VT good diversifiers for each other?
Only partially. A correlation of 0.60 means CMI and VT share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between CMI and VT?
The CMI/VT correlation stands at 0.60 on a 3-year window (1 year: 0.45, 5 years: 0.63), computed from weekly returns as of 2026-08-27.
Is VT a good diversifier for CMI?
Only partially. A correlation of 0.60 means CMI and VT share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.60 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/cmi-vs-vt.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/cmi-vs-vt/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: CMI correlations · VT correlations
