Asset Comparison and Correlation

Assuming 30 trading days horizon, SP 500 is expected to generate 1.27 times less return on investment than Cummins. But when comparing it to its historical volatility, S&P 500 is 3.84 times less risky than Cummins. It trades about 0.6 of its potential returns per unit of risk. Cummins Inc is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  10,767  in Cummins Inc on April 19, 2013 and sell it today you would earn a total of  876  from holding Cummins Inc or generate 8.14% return on investment over 30 days.