CMI vs VYM: Correlation
How closely do Cummins (CMI) and Vanguard High Dividend Yield ETF (VYM) trade together? Their weekly returns over three years give a correlation of 0.61, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CMI and VYM?
Over the past 3 years, CMI and VYM moved with a correlation of 0.61, which is strong. The past 12 months show a weaker link (0.36) than the 3-year average (0.61). Over 5 years the correlation is 0.67, and the annualized covariance of weekly returns is 193.2 %².
Within CMI's tracked universe of 36 assets, VYM comes in at #10 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months CMI outperformed by 24.0 percentage points (+45.1% for CMI against +21.1% for VYM). Across three years, the rolling one-year figure varied moderately, from 0.34 to 0.82. Risk is not evenly split, since CMI carries 2.1 times the volatility of the other side.
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 VYM: side by side
| CMI (Cummins) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | +45.1% | +21.1% |
| 5-year return | +169.6% | +76.6% |
| Volatility (ann.) | 25.9% | 12.3% |
| Beta vs S&P 500 | 1.05 | 0.69 |
| Max drawdown (3Y) | -30.5% | -14.5% |
| Market cap | $79.0B | – |
| P/E (trailing) | 29.6 | – |
| Dividend yield | 1.38% | 2.24% |
| Expense ratio | – | 0.04% |
| Assets under management | – | $99.2B |
| Sector / category | Industrials | ETF · Dividend |
VYM, Vanguard's Large Value fund, carries $99.2B under management, 604 holdings, a 0.04% expense ratio, a 2.24% trailing dividend yield.
Year-by-year returns
| Year | CMI | VYM |
|---|---|---|
| 2022 | +14.1% | -0.4% |
| 2023 | +1.7% | +6.6% |
| 2024 | +48.9% | +17.6% |
| 2025 | +49.4% | +15.4% |
| 2026 | +13.6% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.36% of VYM is CMI itself, so the fund partly moves with the stock by construction.
Are CMI and VYM good diversifiers for each other?
To a limited degree. At 0.61 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between CMI and VYM?
Using weekly returns as of 2026-08-27: 0.61 over 3 years, with 0.36 over the last year and 0.67 over 5 years.
Is VYM a good diversifier for CMI?
To a limited degree. At 0.61 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.61 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-vym.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/cmi-vs-vym/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: CMI correlations · VYM correlations
