Correlation Between Caterpillar and INTEL
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By analyzing existing cross correlation between Caterpillar and INTEL PORATION, you can compare the effects of market volatilities on Caterpillar and INTEL 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 INTEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caterpillar and INTEL.
Diversification Opportunities for Caterpillar and INTEL
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Caterpillar and INTEL is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Caterpillar and INTEL PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTEL PORATION 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 INTEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTEL PORATION has no effect on the direction of Caterpillar i.e., Caterpillar and INTEL go up and down completely randomly.
Pair Corralation between Caterpillar and INTEL
Considering the 90-day investment horizon Caterpillar is expected to under-perform the INTEL. In addition to that, Caterpillar is 1.26 times more volatile than INTEL PORATION. It trades about -0.44 of its total potential returns per unit of risk. INTEL PORATION is currently generating about 0.22 per unit of volatility. If you would invest 7,896 in INTEL PORATION on November 28, 2024 and sell it today you would earn a total of 423.00 from holding INTEL PORATION or generate 5.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Caterpillar vs. INTEL PORATION
Performance |
| Timeline |
| Caterpillar |
| INTEL PORATION |
Caterpillar and INTEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caterpillar and INTEL
The main advantage of trading using opposite Caterpillar and INTEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caterpillar position performs unexpectedly, INTEL 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 INTEL will offset losses from the drop in INTEL's long position.| Caterpillar vs. Aquagold International | Caterpillar vs. Thrivent High Yield | Caterpillar vs. Morningstar Unconstrained Allocation | Caterpillar vs. Via Renewables |
| INTEL vs. Integrated Media Technology | INTEL vs. Canlan Ice Sports | INTEL vs. Perseus Mining Limited | INTEL vs. East Africa Metals |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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