Correlation Analysis Between Caterpillar and Deere

This module allows you to analyze existing cross correlation between Caterpillar and Deere Company. You can compare the effects of market volatilities on Caterpillar and Deere 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 Deere. See also your portfolio center. Please also check ongoing floating volatility patterns of Caterpillar and Deere.
Horizon     30 Days    Login   to change
Symbolsvs

Caterpillar Inc  vs.  Deere Company

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Caterpillar is expected to generate 1.01 times more return on investment than Deere. However, Caterpillar is 1.01 times more volatile than Deere Company. It trades about 0.27 of its potential returns per unit of risk. Deere Company is currently generating about 0.23 per unit of risk. If you would invest  13,867  in Caterpillar on August 20, 2018 and sell it today you would earn a total of  985.00  from holding Caterpillar or generate 7.1% return on investment over 30 days.

Pair Corralation between Caterpillar and Deere

0.85
Time Period1 Month [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification

Very poor diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 
Caterpillar  
17 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Caterpillar are ranked lower than 17 (%) of all global equities and portfolios over the last 30 days.
Deere Company  
15 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Deere Company are ranked lower than 15 (%) of all global equities and portfolios over the last 30 days.

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GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1161.22

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