CAT vs FNGD: Correlation
How closely do Caterpillar Inc. (CAT) and MicroSectors FANG Index -3X Inverse Leveraged ETNs due (FNGD) trade together? Their weekly returns over three years give a correlation of -0.29, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAT and FNGD?
Across a 3-year window, the weekly returns of CAT and FNGD correlate at -0.29, negative, meaning they tend to move in opposite directions. Lately the two have moved closer together, with the 1-year correlation at -0.09 versus -0.29 over 3 years. Stretching to 5 years gives -0.29, with an annualized covariance of -647.4 %².
Out of 36 assets tracked against CAT, FNGD lands near the bottom at #34. Their recent paths diverged sharply: over the last 12 months CAT outperformed by 146.2 percentage points (+90.5% for CAT against -55.7% for FNGD). Risk is not evenly split, since FNGD carries 2.6 times the volatility of the other side.
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 FNGD: side by side
| CAT (Caterpillar Inc.) | FNGD (MicroSectors FANG Index -3X Inverse Leveraged ETNs due) | |
|---|---|---|
| 1-year return | +90.5% | -55.7% |
| 5-year return | +321.1% | -99.4% |
| Volatility (ann.) | 29.4% | 75.7% |
| Beta vs S&P 500 | 1.03 | -4.54 |
| Max drawdown (3Y) | -34.0% | -97.6% |
| Market cap | $375.6B | – |
| P/E (trailing) | 35.3 | 20.6 |
| Dividend yield | 0.75% | 0.00% |
| Sector / category | Industrials | US Listed |
Year-by-year returns
| Year | CAT | FNGD |
|---|---|---|
| 2022 | +18.6% | +52.2% |
| 2023 | +25.9% | -90.1% |
| 2024 | +24.7% | -76.6% |
| 2025 | +60.3% | -61.4% |
| 2026 | +43.5% | -49.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAT and FNGD good diversifiers for each other?
Yes. With a correlation of -0.29, CAT and FNGD have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between CAT and FNGD?
As of 2026-08-27, the correlation of weekly returns between CAT and FNGD is -0.29 over 3 years, -0.09 over 1 year and -0.29 over 5 years.
Is FNGD a good diversifier for CAT?
Yes. With a correlation of -0.29, CAT and FNGD have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.29 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-fngd.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/cat-vs-fngd/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: CAT correlations · FNGD correlations
