Caterpillar Stock Forecast - Daily Balance Of Power
| CAT Stock | USD 363.91 1.72 0.47% |
Caterpillar Stock Forecast is based on your current time horizon. Investors can use this forecasting interface to forecast Caterpillar stock prices and determine the direction of Caterpillar's future trends based on various well-known forecasting models. We recommend always using this module together with an analysis of Caterpillar's historical fundamentals, such as revenue growth or operating cash flow patterns. Although Caterpillar's naive historical forecasting may sometimes provide an important future outlook for the firm, we recommend always cross-verifying it against solid analysis of Caterpillar's systematic risk associated with finding meaningful patterns of Caterpillar fundamentals over time.
Check out Historical Fundamental Analysis of Caterpillar to cross-verify your projections. Caterpillar |
Open Interest Against 2024-04-19 Caterpillar Option Contracts
Although open interest is a measure utilized in the options markets, it could be used to forecast Caterpillar's spot prices because the number of available contracts in the market changes daily, and new contracts can be created or liquidated at will. Since open interest in Caterpillar's options reflects these daily shifts, investors could use the patterns of these changes to develop long and short-term trading strategies for Caterpillar stock based on available contracts left at the end of a trading day.
Please note that to derive more accurate forecasting about market movement from the current Caterpillar's open interest, investors have to compare it to Caterpillar's spot prices. As Ford's stock price increases, high open interest indicates that money is entering the market, and the market is strongly bullish. Conversely, if the price of Caterpillar is decreasing and there is high open interest, that is a sign that the bearish trend will continue, and investors may react by taking short positions in Caterpillar. So, decreasing or low open interest during a bull market indicates that investors are becoming uncertain of the depth of the bullish trend, and a reversal in sentiment will likely follow.
Most investors in Caterpillar cannot accurately predict what will happen the next trading day because, historically, stock markets tend to be unpredictable and even illogical. Modeling turbulent structures requires applying different statistical methods, techniques, and algorithms to find hidden data structures or patterns within the Caterpillar's time series price data and predict how it will affect future prices. One of these methodologies is forecasting, which interprets Caterpillar's price structures and extracts relationships that further increase the generated results' accuracy.
Balance of Power indicator (or BOP) measures the strength of Caterpillar market sensitivity to bulls and bears. It estimates the ability of Caterpillar buyers and sellers to push price to an extreme high or extreme low level. As a result, by monitoring Caterpillar Balance of Power indicator one can determine a trend of the price direction.| Check Caterpillar Volatility | Backtest Caterpillar | Information Ratio |
Balance of Power indicator was created by Igor Livshin to predict asset short term price movements or warning signals. If Balance of Power indicator is trended towards the high of its range it will signify that the bulls are in control. On the other hand when the BOP indicator is moving towards the lows of its range it signifies that the bears are in control. If the indicator move from a high positive range to a lower positive range it signifies that the buying pressure is decreasing. Conversely, if the indicator move from a low negative range to a higher negative range it signifies that the selling pressure is decreasing.
| Compare Caterpillar to competition |
Other Forecasting Options for Caterpillar
For every potential investor in Caterpillar, whether a beginner or expert, Caterpillar's price movement is the inherent factor that sparks whether it is viable to invest in it or hold it better. Caterpillar Stock price charts are filled with many 'noises.' These noises can hugely alter the decision one can make regarding investing in Caterpillar. Basic forecasting techniques help filter out the noise by identifying Caterpillar's price trends.Caterpillar Related Equities
One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with Caterpillar stock to make a market-neutral strategy. Peer analysis of Caterpillar could also be used in its relative valuation, which is a method of valuing Caterpillar by comparing valuation metrics with similar companies.
| Risk & Return | Correlation |
Caterpillar Technical and Predictive Analytics
The stock market is financially volatile. Despite the volatility, there exist limitless possibilities of gaining profits and building passive income portfolios. With the complexity of Caterpillar's price movements, a comprehensive understanding of forecasting methods that an investor can rely on to make the right move is invaluable. These methods predict trends that assist an investor in predicting the movement of Caterpillar's current price.| Cycle Indicators | ||
| Math Operators | ||
| Math Transform | ||
| Momentum Indicators | ||
| Overlap Studies | ||
| Pattern Recognition | ||
| Price Transform | ||
| Statistic Functions | ||
| Volatility Indicators | ||
| Volume Indicators |
Caterpillar Market Strength Events
Market strength indicators help investors to evaluate how Caterpillar stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Caterpillar shares will generate the highest return on investment. By undertsting and applying Caterpillar stock market strength indicators, traders can identify Caterpillar entry and exit signals to maximize returns.
| Accumulation Distribution | 0.033 | |||
| Daily Balance Of Power | (0.14) | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 368.29 | |||
| Day Typical Price | 366.83 | |||
| Market Facilitation Index | 12.35 | |||
| Price Action Indicator | (5.23) | |||
| Period Momentum Indicator | (1.72) |
Caterpillar Risk Indicators
The analysis of Caterpillar's basic risk indicators is one of the essential steps in accurately forecasting its future price. The process involves identifying the amount of risk involved in Caterpillar's investment and either accepting that risk or mitigating it. Along with some essential techniques for forecasting caterpillar stock prices, we also provide a set of basic risk indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Mean Deviation | 1.09 | |||
| Semi Deviation | 1.11 | |||
| Standard Deviation | 1.39 | |||
| Variance | 1.93 | |||
| Downside Variance | 2.08 | |||
| Semi Variance | 1.23 | |||
| Expected Short fall | (1.17) |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Caterpillar Investors Sentiment
The influence of Caterpillar's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Caterpillar. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Caterpillar's public news can be used to forecast risks associated with an investment in Caterpillar. The trend in average sentiment can be used to explain how an investor holding Caterpillar can time the market purely based on public headlines and social activities around Caterpillar. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Caterpillar's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Caterpillar's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Caterpillar's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Caterpillar.
Caterpillar Implied Volatility | 42.23 |
Caterpillar's implied volatility exposes the market's sentiment of Caterpillar stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Caterpillar's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Caterpillar stock will not fluctuate a lot when Caterpillar's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Caterpillar in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Caterpillar's short interest history, or implied volatility extrapolated from Caterpillar options trading.
Pair Trading with Caterpillar
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Caterpillar position performs unexpectedly, the other equity 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 Caterpillar will appreciate offsetting losses from the drop in the long position's value.Moving against Caterpillar Stock
| 0.92 | GP | GreenPower Motor Financial Report 12th of July 2024 | PairCorr |
| 0.85 | LNN | Lindsay Financial Report 4th of July 2024 | PairCorr |
| 0.84 | LEV | Lion Electric Corp Financial Report 14th of May 2024 | PairCorr |
| 0.84 | TWI | Titan International Financial Report 1st of May 2024 | PairCorr |
| 0.8 | ZEVYW | Lightning eMotors | PairCorr |
The ability to find closely correlated positions to Caterpillar could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Caterpillar when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Caterpillar - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Caterpillar to buy it.
The correlation of Caterpillar is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Caterpillar moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Caterpillar moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Caterpillar can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Historical Fundamental Analysis of Caterpillar to cross-verify your projections. For more information on how to buy Caterpillar Stock please use our How to Invest in Caterpillar guide.Note that the Caterpillar information on this page should be used as a complementary analysis to other Caterpillar's statistical models used 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Complementary Tools for Caterpillar Stock analysis
When running Caterpillar's price analysis, check to measure Caterpillar's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Caterpillar is operating at the current time. Most of Caterpillar's value examination focuses on studying past and present price action to predict the probability of Caterpillar's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Caterpillar's price. Additionally, you may evaluate how the addition of Caterpillar to your portfolios can decrease your overall portfolio volatility.
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Is Caterpillar's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Caterpillar. If investors know Caterpillar will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Caterpillar listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.893 | Dividend Share 5.1 | Earnings Share 20.12 | Revenue Per Share 131.336 | Quarterly Revenue Growth 0.029 |
The market value of Caterpillar is measured differently than its book value, which is the value of Caterpillar that is recorded on the company's balance sheet. Investors also form their own opinion of Caterpillar's value that differs from its market value or its book value, called intrinsic value, which is Caterpillar's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Caterpillar's market value can be influenced by many factors that don't directly affect Caterpillar's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Caterpillar's value and its price as these two are different measures arrived at by different means. Investors typically determine if Caterpillar is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Caterpillar's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.