Correlation Between HP and CATERPILLAR
Specify exactly 2 symbols:
By analyzing existing cross correlation between HP Inc and CATERPILLAR INC 53, you can compare the effects of market volatilities on HP and CATERPILLAR 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 HP with a short position of CATERPILLAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of HP and CATERPILLAR.
Diversification Opportunities for HP and CATERPILLAR
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HP and CATERPILLAR is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding HP Inc and CATERPILLAR INC 53 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CATERPILLAR INC 53 and HP 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 HP Inc are associated (or correlated) with CATERPILLAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CATERPILLAR INC 53 has no effect on the direction of HP i.e., HP and CATERPILLAR go up and down completely randomly.
Pair Corralation between HP and CATERPILLAR
Considering the 90-day investment horizon HP Inc is expected to under-perform the CATERPILLAR. In addition to that, HP is 4.37 times more volatile than CATERPILLAR INC 53. It trades about -0.1 of its total potential returns per unit of risk. CATERPILLAR INC 53 is currently generating about 0.06 per unit of volatility. If you would invest 10,345 in CATERPILLAR INC 53 on September 12, 2024 and sell it today you would earn a total of 87.00 from holding CATERPILLAR INC 53 or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HP Inc vs. CATERPILLAR INC 53
Performance |
| Timeline |
| HP Inc |
| CATERPILLAR INC 53 |
HP and CATERPILLAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HP and CATERPILLAR
The main advantage of trading using opposite HP and CATERPILLAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HP position performs unexpectedly, CATERPILLAR 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 CATERPILLAR will offset losses from the drop in CATERPILLAR's long position.| HP vs. Victory Integrity Smallmid Cap | HP vs. Hilton Worldwide Holdings | HP vs. NVIDIA | HP vs. JPMorgan Chase Co |
| CATERPILLAR vs. AEP TEX INC | CATERPILLAR vs. US BANK NATIONAL | CATERPILLAR vs. Applied Blockchain | CATERPILLAR vs. BigBearai Holdings |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |