Correlation Between Caterpillar and Near Intelligence
Can any of the company-specific risk be diversified away by investing in both Caterpillar and Near Intelligence at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Caterpillar and Near Intelligence into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caterpillar and Near Intelligence, you can compare the effects of market volatilities on Caterpillar and Near Intelligence and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Caterpillar with a short position of Near Intelligence. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caterpillar and Near Intelligence.
Diversification Opportunities for Caterpillar and Near Intelligence
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Caterpillar and Near is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Caterpillar and Near Intelligence in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Near Intelligence and Caterpillar is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Caterpillar are associated (or correlated) with Near Intelligence. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Near Intelligence has no effect on the direction of Caterpillar i.e., Caterpillar and Near Intelligence go up and down completely randomly.
Pair Corralation between Caterpillar and Near Intelligence
If you would invest 38,968 in Caterpillar on August 28, 2024 and sell it today you would earn a total of 1,815 from holding Caterpillar or generate 4.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 2.33% |
| Values | Daily Returns |
Caterpillar vs. Near Intelligence
Performance |
| Timeline |
| Caterpillar |
| Near Intelligence |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Caterpillar and Near Intelligence Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caterpillar and Near Intelligence
The main advantage of trading using opposite Caterpillar and Near Intelligence positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caterpillar position performs unexpectedly, Near Intelligence can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Near Intelligence will offset losses from the drop in Near Intelligence's long position.| Caterpillar vs. Lion Electric Corp | Caterpillar vs. Xos Inc | Caterpillar vs. Hydrofarm Holdings Group | Caterpillar vs. AGCO Corporation |
| Near Intelligence vs. HeartCore Enterprises | Near Intelligence vs. Trust Stamp | Near Intelligence vs. Quhuo | Near Intelligence vs. Infobird Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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