Pair Correlation Between Caterpillar and AGCO

This module allows you to analyze existing cross correlation between Caterpillar Inc and AGCO Corporation. You can compare the effects of market volatilities on Caterpillar and AGCO 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 AGCO. See also your portfolio center. Please also check ongoing floating volatility patterns of Caterpillar and AGCO.
 Time Horizon     30 Days    Login   to change
 Caterpillar Inc  vs   AGCO Corp.
 Performance (%) 

Pair Volatility

Considering 30-days investment horizon, Caterpillar Inc is expected to generate 0.89 times more return on investment than AGCO. However, Caterpillar Inc is 1.13 times less risky than AGCO. It trades about 0.5 of its potential returns per unit of risk. AGCO Corporation is currently generating about 0.01 per unit of risk. If you would invest  15,644  in Caterpillar Inc on December 24, 2017 and sell it today you would earn a total of  1,375  from holding Caterpillar Inc or generate 8.79% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Caterpillar and AGCO


Time Period1 Month [change]
ValuesDaily Returns


Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Caterpillar Inc and AGCO Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on AGCO 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 Inc are associated (or correlated) with AGCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGCO has no effect on the direction of Caterpillar i.e. Caterpillar and AGCO go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 

Caterpillar Inc


Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Caterpillar Inc are ranked lower than 32 (%) of all global equities and portfolios over the last 30 days.



Risk-Adjusted Performance

Over the last 30 days AGCO Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.