CAT vs ETN: Correlation
How closely do Caterpillar Inc. (CAT) and Eaton Corporation (ETN) trade together? Their weekly returns over three years give a correlation of 0.62, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAT and ETN?
Over the past 3 years, CAT and ETN moved with a correlation of 0.62, which is strong. Recent behaviour matches the longer record: 0.63 over 1 year against 0.62 over 3. Over 5 years the correlation is 0.61, and the annualized covariance of weekly returns is 551.3 %².
By 3-year correlation, ETN places #5 of the 36 assets tracked against CAT. Correlation aside, the last 12 months split them widely, with CAT ahead by 70.8 points (+90.5% versus +19.7%). Across three years, the rolling one-year figure varied moderately, from 0.47 to 0.75.
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 ETN: side by side
| CAT (Caterpillar Inc.) | ETN (Eaton Corporation) | |
|---|---|---|
| 1-year return | +90.5% | +19.7% |
| 5-year return | +321.1% | +164.1% |
| Volatility (ann.) | 29.4% | 30.2% |
| Beta vs S&P 500 | 1.03 | 1.33 |
| Max drawdown (3Y) | -34.0% | -34.5% |
| Market cap | $375.6B | $161.6B |
| P/E (trailing) | 35.3 | 42.4 |
| Dividend yield | 0.75% | 1.02% |
| Sector / category | Industrials | Industrials |
Year-by-year returns
| Year | CAT | ETN |
|---|---|---|
| 2022 | +18.6% | -7.2% |
| 2023 | +25.9% | +56.2% |
| 2024 | +24.7% | +39.5% |
| 2025 | +60.3% | -2.8% |
| 2026 | +43.5% | +31.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAT and ETN good diversifiers for each other?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between CAT and ETN?
Using weekly returns as of 2026-08-27: 0.62 over 3 years, with 0.63 over the last year and 0.61 over 5 years.
Is ETN a good diversifier for CAT?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.62 mean?
On the −1 to +1 scale, 0.62 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: CAT correlations · ETN correlations
