Correlation Between Caterpillar and 053332BC5
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By analyzing existing cross correlation between Caterpillar and AZO 45 01 FEB 28, you can compare the effects of market volatilities on Caterpillar and 053332BC5 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 053332BC5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caterpillar and 053332BC5.
Diversification Opportunities for Caterpillar and 053332BC5
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Caterpillar and 053332BC5 is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Caterpillar and AZO 45 01 FEB 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AZO 45 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 053332BC5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AZO 45 01 has no effect on the direction of Caterpillar i.e., Caterpillar and 053332BC5 go up and down completely randomly.
Pair Corralation between Caterpillar and 053332BC5
Considering the 90-day investment horizon Caterpillar is expected to generate 3.46 times more return on investment than 053332BC5. However, Caterpillar is 3.46 times more volatile than AZO 45 01 FEB 28. It trades about 0.08 of its potential returns per unit of risk. AZO 45 01 FEB 28 is currently generating about 0.01 per unit of risk. If you would invest 21,921 in Caterpillar on August 30, 2024 and sell it today you would earn a total of 18,449 from holding Caterpillar or generate 84.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.51% |
| Values | Daily Returns |
Caterpillar vs. AZO 45 01 FEB 28
Performance |
| Timeline |
| Caterpillar |
| AZO 45 01 |
Caterpillar and 053332BC5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caterpillar and 053332BC5
The main advantage of trading using opposite Caterpillar and 053332BC5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caterpillar position performs unexpectedly, 053332BC5 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 053332BC5 will offset losses from the drop in 053332BC5's long position.| Caterpillar vs. AGCO Corporation | Caterpillar vs. Nikola Corp | Caterpillar vs. PACCAR Inc | Caterpillar vs. Deere Company |
| 053332BC5 vs. AEP TEX INC | 053332BC5 vs. US BANK NATIONAL | 053332BC5 vs. PayPal Holdings | 053332BC5 vs. IONQ Inc |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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