Correlation Between Caterpillar and Mndvux
Can any of the company-specific risk be diversified away by investing in both Caterpillar and Mndvux at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Caterpillar and Mndvux into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caterpillar and Mndvux, you can compare the effects of market volatilities on Caterpillar and Mndvux 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 Mndvux. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caterpillar and Mndvux.
Diversification Opportunities for Caterpillar and Mndvux
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Caterpillar and Mndvux is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Caterpillar and Mndvux in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mndvux 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 Mndvux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mndvux has no effect on the direction of Caterpillar i.e., Caterpillar and Mndvux go up and down completely randomly.
Pair Corralation between Caterpillar and Mndvux
Considering the 90-day investment horizon Caterpillar is expected to generate 1.71 times more return on investment than Mndvux. However, Caterpillar is 1.71 times more volatile than Mndvux. It trades about 0.42 of its potential returns per unit of risk. Mndvux is currently generating about 0.19 per unit of risk. If you would invest 29,117 in Caterpillar on April 22, 2025 and sell it today you would earn a total of 12,254 from holding Caterpillar or generate 42.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Caterpillar vs. Mndvux
Performance |
| Timeline |
| Caterpillar |
| Mndvux |
Caterpillar and Mndvux Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caterpillar and Mndvux
The main advantage of trading using opposite Caterpillar and Mndvux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caterpillar position performs unexpectedly, Mndvux 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 Mndvux will offset losses from the drop in Mndvux's long position.| Caterpillar vs. Blue Bird Corp | Caterpillar vs. AYRO Inc | Caterpillar vs. Hyliion Holdings Corp | Caterpillar vs. Kandi Technologies Group |
| Mndvux vs. Franklin Adjustable Government | Mndvux vs. Intermediate Government Bond | Mndvux vs. Franklin Government Securities | Mndvux vs. Ridgeworth Seix Government |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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