Correlation Between Caterpillar and CROWN
Specify exactly 2 symbols:
By analyzing existing cross correlation between Caterpillar and CROWN CASTLE INTL, you can compare the effects of market volatilities on Caterpillar and CROWN 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 CROWN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caterpillar and CROWN.
Diversification Opportunities for Caterpillar and CROWN
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Caterpillar and CROWN is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Caterpillar and CROWN CASTLE INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CROWN CASTLE INTL 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 CROWN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CROWN CASTLE INTL has no effect on the direction of Caterpillar i.e., Caterpillar and CROWN go up and down completely randomly.
Pair Corralation between Caterpillar and CROWN
Considering the 90-day investment horizon Caterpillar is expected to under-perform the CROWN. In addition to that, Caterpillar is 7.41 times more volatile than CROWN CASTLE INTL. It trades about -0.41 of its total potential returns per unit of risk. CROWN CASTLE INTL is currently generating about 0.04 per unit of volatility. If you would invest 9,963 in CROWN CASTLE INTL on November 29, 2024 and sell it today you would earn a total of 17.00 from holding CROWN CASTLE INTL or generate 0.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caterpillar vs. CROWN CASTLE INTL
Performance |
| Timeline |
| Caterpillar |
| CROWN CASTLE INTL |
Caterpillar and CROWN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caterpillar and CROWN
The main advantage of trading using opposite Caterpillar and CROWN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caterpillar position performs unexpectedly, CROWN 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 CROWN will offset losses from the drop in CROWN's long position.| Caterpillar vs. Aquagold International | Caterpillar vs. Thrivent High Yield | Caterpillar vs. Morningstar Unconstrained Allocation | Caterpillar vs. Via Renewables |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |