Correlation Between Caterpillar and 023135CN4
Specify exactly 2 symbols:
By analyzing existing cross correlation between Caterpillar and AMZN 46 01 DEC 25, you can compare the effects of market volatilities on Caterpillar and 023135CN4 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 023135CN4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caterpillar and 023135CN4.
Diversification Opportunities for Caterpillar and 023135CN4
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Caterpillar and 023135CN4 is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Caterpillar and AMZN 46 01 DEC 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMZN 46 01 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 023135CN4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMZN 46 01 has no effect on the direction of Caterpillar i.e., Caterpillar and 023135CN4 go up and down completely randomly.
Pair Corralation between Caterpillar and 023135CN4
Considering the 90-day investment horizon Caterpillar is expected to generate 11.27 times more return on investment than 023135CN4. However, Caterpillar is 11.27 times more volatile than AMZN 46 01 DEC 25. It trades about 0.09 of its potential returns per unit of risk. AMZN 46 01 DEC 25 is currently generating about -0.01 per unit of risk. If you would invest 33,666 in Caterpillar on August 28, 2024 and sell it today you would earn a total of 6,899 from holding Caterpillar or generate 20.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caterpillar vs. AMZN 46 01 DEC 25
Performance |
| Timeline |
| Caterpillar |
| AMZN 46 01 |
Caterpillar and 023135CN4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caterpillar and 023135CN4
The main advantage of trading using opposite Caterpillar and 023135CN4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caterpillar position performs unexpectedly, 023135CN4 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 023135CN4 will offset losses from the drop in 023135CN4's long position.| Caterpillar vs. Lion Electric Corp | Caterpillar vs. Xos Inc | Caterpillar vs. Hydrofarm Holdings Group | Caterpillar vs. AGCO Corporation |
| 023135CN4 vs. AEP TEX INC | 023135CN4 vs. US BANK NATIONAL | 023135CN4 vs. 3M Company | 023135CN4 vs. Alcoa Corp |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |