CAT vs DE: Correlation
Measured on weekly returns over the past three years, Caterpillar Inc. (CAT) and Deere & Company (DE) carry a correlation of 0.51, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAT and DE?
Over the past 3 years, CAT and DE moved with a correlation of 0.51, which is moderate. The past 12 months show a weaker link (0.36) than the 3-year average (0.51). Over 5 years the correlation is 0.61, and the annualized covariance of weekly returns is 399.6 %².
Within CAT's tracked universe of 36 assets, DE comes in at #21 by 3-year correlation. The last year tells two different stories: CAT led by 62.6 percentage points, +90.5% for CAT against +27.9% for DE. The rolling one-year correlation moved between 0.41 and 0.75 over the past three years, a moderate range.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
CAT vs DE: side by side
| CAT (Caterpillar Inc.) | DE (Deere & Company) | |
|---|---|---|
| 1-year return | +90.5% | +27.9% |
| 5-year return | +321.1% | +74.5% |
| Volatility (ann.) | 29.4% | 26.7% |
| Beta vs S&P 500 | 1.03 | 0.65 |
| Max drawdown (3Y) | -34.0% | -19.9% |
| Market cap | $375.6B | $168.1B |
| P/E (trailing) | 35.3 | 35.2 |
| Dividend yield | 0.75% | 1.02% |
| Sector / category | Industrials | Industrials |
Year-by-year returns
| Year | CAT | DE |
|---|---|---|
| 2022 | +18.6% | +26.6% |
| 2023 | +25.9% | -5.5% |
| 2024 | +24.7% | +7.6% |
| 2025 | +60.3% | +11.4% |
| 2026 | +43.5% | +34.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAT and DE good diversifiers for each other?
Only partially. A correlation of 0.51 means CAT and DE share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between CAT and DE?
Using weekly returns as of 2026-08-27: 0.51 over 3 years, with 0.36 over the last year and 0.61 over 5 years.
Is DE a good diversifier for CAT?
Only partially. A correlation of 0.51 means CAT and DE share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.51 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/cat-vs-de.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/cat-vs-de/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: CAT correlations · DE correlations
