Caterpillar Correlations

CAT Stock

USD 338.62 1.91 0.57%

The current 90-days correlation between Caterpillar and PACCAR Inc is 0.57 (i.e., Very weak diversification). The correlation of Caterpillar is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Caterpillar Correlation With Market

Very weak diversification

The correlation between Caterpillar and DJI is 0.52 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Caterpillar and DJI in the same portfolio, assuming nothing else is changed.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Caterpillar. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.

For more information on how to buy Caterpillar Stock please use our How to Invest in Caterpillar guide.

Moving together with Caterpillar Stock

0.73	GP	GreenPower Motor	Pair Corr
0.7	HY	Hyster Yale Materials	Pair Corr
0.87	TEX	Terex	Pair Corr
0.73	WNC	Wabash National Sell-off Trend	Pair Corr
0.66	GENC	Gencor Industries	Pair Corr
0.64	HYFM	Hydrofarm Holdings	Pair Corr
0.68	PCAR	PACCAR Inc	Pair Corr
0.75	REVG	Rev Group	Pair Corr
0.76	SHYF	Shyft Group	Pair Corr
0.65	BLBD	Blue Bird Corp	Pair Corr
0.8	CMCO	Columbus McKinnon	Pair Corr
0.89	J	Jacobs Solutions	Pair Corr
0.65	AP	Ampco Pittsburgh Earnings Call This Week	Pair Corr
0.78	BV	BrightView Holdings	Pair Corr
0.65	BW	Babcock Wilcox Enter	Pair Corr

Moving against Caterpillar Stock

0.6	CEADW	CEA Industries Warrant	Pair Corr
0.49	XOS	Xos Inc Earnings Call Today	Pair Corr
0.5	G	Genpact Limited	Pair Corr
0.49	CEAD	CEA Industries Earnings Call This Week	Pair Corr

Related Correlations Analysis

	AGCO	NKLA	PCAR	DE	LNN	ALG	OSK	TEX	MTW	WNC
AGCO		-0.11	0.61	0.63	0.81	0.26	0.48	0.47	0.51	-0.03	AGCO
NKLA	-0.11		0.43	-0.77	-0.42	0.17	-0.3	0.77	-0.47	0.95	NKLA
PCAR	0.61	0.43		0.01	0.39	0.13	0.19	0.68	0.14	0.49	PCAR
DE	0.63	-0.77	0.01		0.82	0.14	0.59	-0.25	0.8	-0.73	DE
LNN	0.81	-0.42	0.39	0.82		0.2	0.53	0.17	0.75	-0.38	LNN
ALG	0.26	0.17	0.13	0.14	0.2		0.2	0.42	0.26	0.3	ALG
OSK	0.48	-0.3	0.19	0.59	0.53	0.2		0.2	0.69	-0.28	OSK
TEX	0.47	0.77	0.68	-0.25	0.17	0.42	0.2		0.04	0.78	TEX
MTW	0.51	-0.47	0.14	0.8	0.75	0.26	0.69	0.04		-0.49	MTW
WNC	-0.03	0.95	0.49	-0.73	-0.38	0.3	-0.28	0.78	-0.49		WNC
	AGCO	NKLA	PCAR	DE	LNN	ALG	OSK	TEX	MTW	WNC

Click cells to compare fundamentals

Check Volatility

Backtest Portfolio

Please upgrade your account to get full access to Macroaxis premium features

Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

WNC	+ 0.95	NKLA
LNN	+ 0.82	DE
LNN	+ 0.81	AGCO
MTW	+ 0.8	DE
WNC	+ 0.78	TEX
TEX	+ 0.77	NKLA

High negative correlations

DE	- 0.77	NKLA
WNC	- 0.73	DE
WNC	- 0.49	MTW
MTW	- 0.47	NKLA
LNN	- 0.42	NKLA
WNC	- 0.38	LNN

Risk-Adjusted Indicators

There is a big difference between Caterpillar Stock performing well and Caterpillar Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Caterpillar's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
AGCO	1.90	0.05	0.00	(0.03)	0.00	0.00	4.48	(3.80)	13.24
NKLA	10.44	(2.38)	0.00	(2.78)	0.00	0.00	24.03	(30.77)	81.55
PCAR	1.28	(0.09)	0.00	(0.21)	0.00	0.00	2.24	(3.37)	9.09
DE	1.38	0.21	0.14	0.17	1.47	(1.48)	3.48	(2.65)	8.33
LNN	1.19	0.07	0.00	(0.02)	0.00	0.00	2.90	(2.27)	6.31
ALG	1.06	(0.03)	0.00	(0.27)	0.00	0.00	1.96	(2.71)	7.08
OSK	1.46	0.05	0.00	(0.05)	0.00	0.00	1.68	(2.92)	24.90
TEX	1.82	(0.23)	0.00	(0.28)	0.00	0.00	3.39	(3.80)	10.40
MTW	2.23	0.14	0.00	(0.02)	0.00	0.00	5.24	(5.05)	19.98
WNC	2.25	(0.74)	0.00	(0.94)	0.00	0.00	4.28	(5.52)	13.46

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

Feedback Blog

Made with optimal in San Francisco

2024 Macroaxis LLC