Caterpillar Correlations

CAT1 Stock

EUR 332.00 5.00 1.53%

The current 90-days correlation between Caterpillar and BANK OCHINA H is -0.17 (i.e., Good 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.

Caterpillar Correlation With Market

Modest diversification

The correlation between Caterpillar and DJI is 0.21 (i.e., Modest 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.

The ability to find closely correlated positions to Caterpillar could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Caterpillar when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Caterpillar - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Caterpillar to buy it.

Moving together with Caterpillar Stock

0.99	CAT1	Caterpillar	Pair Corr
0.7	ASJA	ASTRA INTERNATIONAL	Pair Corr
0.7	ASJA	ASTRA INTERNATIONAL	Pair Corr

Moving against Caterpillar Stock

0.63	8TRA	Traton SE	Pair Corr
0.61	SSU	Samsung Electronics	Pair Corr
0.59	SSU	Samsung Electronics	Pair Corr
0.55	M6Q	Metso Outotec Oyj	Pair Corr
0.54	8TRA	Traton SE	Pair Corr
0.51	SSUN	Samsung Electronics	Pair Corr
0.5	SSUN	Samsung Electronics	Pair Corr
0.49	VOL1	AB Volvo	Pair Corr
0.47	KOMA	KOMATSU LTD SPONS	Pair Corr
0.39	DTG	Daimler Truck Holding	Pair Corr
0.71	NZE	Zeon	Pair Corr
0.6	TKA1	thyssenkrupp AG	Pair Corr
0.56	5IW	Inwido AB	Pair Corr
0.55	TM5	T MOBILE US	Pair Corr
0.55	PRU	Prudential plc	Pair Corr
0.53	4AP	Apollo Minerals	Pair Corr
0.51	4GJ	Consorcio ARA S	Pair Corr
0.51	AMG	Amgen Inc	Pair Corr
0.41	MLP	MLP SE Earnings Call This Week	Pair Corr
0.35	BB2	BURBERRY GROUP	Pair Corr
0.33	OD3	ODFJELL DRILLLTD	Pair Corr
0.7	OVI	Olvi Oyj	Pair Corr
0.68	BOA	BK OF EAST	Pair Corr
0.62	BSDK	Banco Santander SA	Pair Corr
0.59	YOC	Yoc AG	Pair Corr

Related Correlations Analysis

	7RA	AS5	XCY	W8VS	DC7	FH21	CG5	L7T
7RA		0.47	-0.31	0.3	0.49	-0.16	-0.31	0.23	7RA
AS5	0.47		0.31	0.65	0.89	0.54	0.34	-0.25	AS5
XCY	-0.31	0.31		0.54	0.28	0.34	0.56	-0.11	XCY
W8VS	0.3	0.65	0.54		0.73	0.22	0.14	0.13	W8VS
DC7	0.49	0.89	0.28	0.73		0.46	0.24	-0.16	DC7
FH21	-0.16	0.54	0.34	0.22	0.46		0.64	-0.61	FH21
CG5	-0.31	0.34	0.56	0.14	0.24	0.64		-0.55	CG5
L7T	0.23	-0.25	-0.11	0.13	-0.16	-0.61	-0.55		L7T
	7RA	AS5	XCY	W8VS	DC7	FH21	CG5	L7T

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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

DC7	+ 0.89	AS5
DC7	+ 0.73	W8VS
W8VS	+ 0.65	AS5
CG5	+ 0.64	FH21
CG5	+ 0.56	XCY
FH21	+ 0.54	AS5

High negative correlations

L7T	- 0.61	FH21
L7T	- 0.55	CG5
CG5	- 0.31	7RA
XCY	- 0.31	7RA
L7T	- 0.25	AS5
L7T	- 0.16	DC7

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
7RA	1.60	0.13	0.07	(0.49)	1.77	(2.10)	3.45	(3.63)	14.60
AS5	1.24	0.15	0.11	0.44	1.26	(1.56)	3.14	(2.44)	6.75
XCY	1.81	0.00	0.08	0.00	1.93	(2.48)	4.52	(3.18)	15.49
W8VS	1.20	0.47	0.24	0.58	1.05	(1.83)	4.65	(1.66)	11.16
DC7	1.32	0.20	0.13	0.28	1.37	(1.46)	3.71	(2.98)	9.25
FH21	1.24	(0.05)	0.00	(0.38)	0.00	0.00	2.84	(2.31)	10.87
CG5	2.15	(0.09)	0.00	(2.77)	0.00	0.00	4.88	(5.49)	15.99
L7T	3.28	0.22	0.04	0.94	4.03	(5.37)	7.41	(6.45)	24.26

Be your own money manager

Our tools can tell you how much better you can do entering a position in Caterpillar without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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