Correlation Between Caterpillar and Sportsmap Tech
Can any of the company-specific risk be diversified away by investing in both Caterpillar and Sportsmap Tech 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 Sportsmap Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caterpillar and Sportsmap Tech Acquisition, you can compare the effects of market volatilities on Caterpillar and Sportsmap Tech 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 Sportsmap Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caterpillar and Sportsmap Tech.
Diversification Opportunities for Caterpillar and Sportsmap Tech
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Caterpillar and Sportsmap is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Caterpillar and Sportsmap Tech Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sportsmap Tech Acqui 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 Sportsmap Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sportsmap Tech Acqui has no effect on the direction of Caterpillar i.e., Caterpillar and Sportsmap Tech go up and down completely randomly.
Pair Corralation between Caterpillar and Sportsmap Tech
If you would invest 32,883 in Caterpillar on September 1, 2024 and sell it today you would earn a total of 7,728 from holding Caterpillar or generate 23.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Caterpillar vs. Sportsmap Tech Acquisition
Performance |
| Timeline |
| Caterpillar |
| Sportsmap Tech Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Caterpillar and Sportsmap Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caterpillar and Sportsmap Tech
The main advantage of trading using opposite Caterpillar and Sportsmap Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caterpillar position performs unexpectedly, Sportsmap Tech 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 Sportsmap Tech will offset losses from the drop in Sportsmap Tech's long position.| Caterpillar vs. AGCO Corporation | Caterpillar vs. Nikola Corp | Caterpillar vs. PACCAR Inc | Caterpillar vs. Deere Company |
| Sportsmap Tech vs. China Aircraft Leasing | Sportsmap Tech vs. Air Lease | Sportsmap Tech vs. U Haul Holding | Sportsmap Tech vs. Meiwu Technology 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 Stocks Directory module to find actively traded stocks across global markets.
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