Caterpillar Correlations

CAT Stock

USD 394.29 2.78 0.71%

The current 90-days correlation between Caterpillar and Deere Company is 0.38 (i.e., 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 poor diversification

The correlation between Caterpillar and DJI is 0.88 (i.e., Very poor 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.

Build AI portfolio with Caterpillar Stock

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

0.74	DE	Deere Company	Pair Corr
0.69	ALG	Alamo Group	Pair Corr
0.62	CNH	CNH Industrial NV Aggressive Push	Pair Corr
0.64	LNN	Lindsay	Pair Corr
0.66	MTW	Manitowoc	Pair Corr
0.66	TEX	Terex	Pair Corr
0.84	TWI	Titan International	Pair Corr
0.68	GENC	Gencor Industries	Pair Corr
0.72	VAPEW	CEA Industries Symbol Change	Pair Corr
0.61	REVG	Rev Group	Pair Corr
0.73	ASTE	Astec Industries	Pair Corr
0.64	J	Jacobs Solutions	Pair Corr
0.92	AL	Air Lease	Pair Corr
0.64	AP	Ampco Pittsburgh	Pair Corr
0.64	AZ	A2Z Smart Technologies	Pair Corr
0.9	BA	Boeing Sell-off Trend	Pair Corr
0.62	BR	Broadridge Financial	Pair Corr
0.74	BV	BrightView Holdings	Pair Corr
0.65	BW	Babcock Wilcox Enter	Pair Corr
0.66	BZ	Kanzhun Ltd ADR	Pair Corr
0.65	CP	Canadian Pacific Railway	Pair Corr
0.7	CR	Crane Company	Pair Corr
0.72	CW	Curtiss Wright	Pair Corr
0.68	DY	Dycom Industries	Pair Corr
0.63	FA	First Advantage Corp	Pair Corr
0.93	GE	GE Aerospace	Pair Corr

Moving against Caterpillar Stock

0.66	UGRO	Urban Gro	Pair Corr
0.61	G	Genpact Limited	Pair Corr
0.44	GP	GreenPower Motor	Pair Corr
0.64	MG	Mistras Group	Pair Corr
0.62	NL	NL Industries	Pair Corr
0.47	PC	Premium Catering	Pair Corr

Related Correlations Analysis

	DE	HY	VAPE	ALG	CNH	LNN	MTW	OSK	TEX
DE		0.73	0.15	0.91	0.93	0.86	0.92	0.84	0.95	DE
HY	0.73		0.08	0.67	0.84	0.8	0.77	0.66	0.82	HY
VAPE	0.15	0.08		0.46	0.22	0.38	0.39	0.57	0.3	VAPE
ALG	0.91	0.67	0.46		0.89	0.87	0.98	0.97	0.95	ALG
CNH	0.93	0.84	0.22	0.89		0.94	0.95	0.85	0.96	CNH
LNN	0.86	0.8	0.38	0.87	0.94		0.92	0.85	0.93	LNN
MTW	0.92	0.77	0.39	0.98	0.95	0.92		0.94	0.98	MTW
OSK	0.84	0.66	0.57	0.97	0.85	0.85	0.94		0.9	OSK
TEX	0.95	0.82	0.3	0.95	0.96	0.93	0.98	0.9		TEX
	DE	HY	VAPE	ALG	CNH	LNN	MTW	OSK	TEX

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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
DE	1.12	0.17	0.11	0.60	0.97	(1.30)	3.36	(1.92)	6.00
HY	1.75	0.11	0.03	0.33	2.08	(1.82)	4.61	(3.55)	11.07
VAPE	3.73	0.52	0.09	1.03	4.25	(4.75)	9.90	(7.30)	46.87
ALG	1.23	0.41	0.28	1.11	0.83	(1.46)	2.91	(1.86)	9.25
CNH	1.50	0.29	0.14	0.91	1.40	(1.78)	3.34	(2.17)	11.04
LNN	1.10	0.21	0.14	0.65	1.03	(1.29)	2.74	(1.65)	5.90
MTW	2.25	0.79	0.32	1.49	1.82	(2.77)	4.70	(2.63)	21.44
OSK	1.65	0.56	0.27	1.43	1.37	(1.99)	4.11	(3.37)	10.24
TEX	2.27	0.54	0.20	1.17	2.17	(2.71)	5.42	(2.82)	14.95

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