Caterpillar Correlations

CAT1 Stock

EUR 306.00 5.00 1.61%

The current 90-days correlation between Caterpillar and Penta Ocean Construction Co is 0.24 (i.e., Modest 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

Good diversification

The correlation between Caterpillar and DJI is -0.09 (i.e., Good 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

0.97	CAT1	Caterpillar	Pair Corr
0.65	4ON	HEALTHCARE TRPFD	Pair Corr

Moving against Caterpillar Stock

0.77	8TRA	Traton SE	Pair Corr
0.73	M6Q	Metso Outotec Oyj	Pair Corr
0.68	3KF	Auxly Cannabis Group Earnings Call This Week	Pair Corr
0.68	VOW	Volkswagen AG	Pair Corr
0.66	8TRA	Traton SE	Pair Corr
0.64	AV6	Avista	Pair Corr
0.54	VOL4	VOLVO B UNSPADR	Pair Corr
0.53	VOL1	AB Volvo	Pair Corr
0.52	STD	STANDARD CHARTERED	Pair Corr
0.5	RHM	Rheinmetall AG	Pair Corr
0.49	AG1	AUTO1 Group SE	Pair Corr
0.41	LBL	KAROON GAS AUST	Pair Corr
0.75	CJH	CanSino Biologics	Pair Corr
0.72	ZEG	ASTRAZENECA	Pair Corr
0.71	VVDH	Veolia Environnement	Pair Corr
0.68	VOWA	VOLKSWAGEN ADR 110ON	Pair Corr
0.68	19YA	Yiren Digital	Pair Corr
0.66	DBPE	Xtrackers LevDAX	Pair Corr
0.64	CMW	CHINA M SRVCS Earnings Call This Week	Pair Corr
0.62	APM	AD PEPPER MEDIA	Pair Corr
0.47	E908	Lyxor 1	Pair Corr
0.42	WSU	WashTec AG Earnings Call This Week	Pair Corr
0.37	WY8	Universal Health Realty	Pair Corr
0.36	KGHA	KGHM Polska Miedz Earnings Call This Week	Pair Corr
0.35	INL	Intel	Pair Corr

Related Correlations Analysis

	PO6	9GY	CUW	UAO	FUY	NUF	TCW	DFA1
PO6		0.4	-0.55	-0.8	0.33	0.39	0.84	-0.6	PO6
9GY	0.4		-0.06	-0.35	-0.15	0.23	0.46	-0.38	9GY
CUW	-0.55	-0.06		0.3	-0.26	-0.14	-0.31	0.14	CUW
UAO	-0.8	-0.35	0.3		-0.33	-0.44	-0.89	0.59	UAO
FUY	0.33	-0.15	-0.26	-0.33		0.45	0.33	-0.07	FUY
NUF	0.39	0.23	-0.14	-0.44	0.45		0.65	-0.08	NUF
TCW	0.84	0.46	-0.31	-0.89	0.33	0.65		-0.52	TCW
DFA1	-0.6	-0.38	0.14	0.59	-0.07	-0.08	-0.52		DFA1
	PO6	9GY	CUW	UAO	FUY	NUF	TCW	DFA1

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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

TCW	+ 0.84	PO6
TCW	+ 0.65	NUF
DFA1	+ 0.59	UAO
TCW	+ 0.46	9GY
NUF	+ 0.45	FUY
9GY	+ 0.4	PO6

High negative correlations

TCW	- 0.89	UAO
UAO	- 0.8	PO6
DFA1	- 0.6	PO6
CUW	- 0.55	PO6
DFA1	- 0.52	TCW
NUF	- 0.44	UAO

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
PO6	1.38	0.19	0.16	2.00	1.29	(1.81)	3.37	(2.33)	14.48
9GY	1.66	0.16	0.06	0.50	2.08	(2.64)	4.17	(3.70)	13.87
CUW	1.37	(0.25)	0.00	3.37	0.00	0.00	2.65	(3.62)	12.31
UAO	3.16	(0.61)	0.00	169.77	0.00	0.00	5.39	(8.11)	33.16
FUY	0.96	(0.01)	0.00	(0.51)	0.00	0.00	1.83	(1.80)	5.39
NUF	1.45	0.05	0.05	0.05	1.57	(1.73)	2.88	(2.78)	6.73
TCW	0.84	0.19	0.19	0.62	0.76	(1.33)	1.88	(1.89)	8.06
DFA1	1.30	(0.16)	0.00	0.19	0.00	0.00	1.94	(2.73)	15.94

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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