Correlation Between Caterpillar and 126307AS6
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By analyzing existing cross correlation between Caterpillar and CSC Holdings 5375, you can compare the effects of market volatilities on Caterpillar and 126307AS6 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 126307AS6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caterpillar and 126307AS6.
Diversification Opportunities for Caterpillar and 126307AS6
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Caterpillar and 126307AS6 is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Caterpillar and CSC Holdings 5375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSC Holdings 5375 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 126307AS6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSC Holdings 5375 has no effect on the direction of Caterpillar i.e., Caterpillar and 126307AS6 go up and down completely randomly.
Pair Corralation between Caterpillar and 126307AS6
Considering the 90-day investment horizon Caterpillar is expected to generate 1.11 times more return on investment than 126307AS6. However, Caterpillar is 1.11 times more volatile than CSC Holdings 5375. It trades about 0.2 of its potential returns per unit of risk. CSC Holdings 5375 is currently generating about -0.06 per unit of risk. If you would invest 43,143 in Caterpillar on August 27, 2025 and sell it today you would earn a total of 12,817 from holding Caterpillar or generate 29.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 84.38% |
| Values | Daily Returns |
Caterpillar vs. CSC Holdings 5375
Performance |
| Timeline |
| Caterpillar |
| CSC Holdings 5375 |
Caterpillar and 126307AS6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caterpillar and 126307AS6
The main advantage of trading using opposite Caterpillar and 126307AS6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caterpillar position performs unexpectedly, 126307AS6 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 126307AS6 will offset losses from the drop in 126307AS6's long position.| Caterpillar vs. Berkshire Hathaway | Caterpillar vs. Reckitt Benckiser Group | Caterpillar vs. Morningstar Unconstrained Allocation | Caterpillar vs. T Rowe Price |
| 126307AS6 vs. Xiabuxiabu Catering Management | 126307AS6 vs. Strategic Management and | 126307AS6 vs. CTPartners Executive Search | 126307AS6 vs. Sims Metal Management |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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