This module allows you to analyze existing cross correlation between Deere Company and Caterpillar. You can compare the effects of market volatilities on Deere 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 Deere with a short position of Caterpillar. See also your portfolio center. Please also check ongoing floating volatility patterns of Deere and Caterpillar.
|Time Horizon||30 Days Login to change|
Deere Company vs. Caterpillar Inc
Allowing for the 30-days total investment horizon, Deere Company is expected to generate 1.29 times more return on investment than Caterpillar. However, Deere is 1.29 times more volatile than Caterpillar. It trades about -0.27 of its potential returns per unit of risk. Caterpillar is currently generating about -0.36 per unit of risk. If you would invest 15,900 in Deere Company on May 25, 2018 and sell it today you would lose (1,583) from holding Deere Company or give up 9.96% of portfolio value over 30 days.