CAT vs GNRC: Correlation
Measured on weekly returns over the past three years, Caterpillar Inc. (CAT) and Generac (GNRC) carry a correlation of 0.50, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAT and GNRC?
Over the past 3 years, CAT and GNRC moved with a correlation of 0.50, which is moderate. Little has changed lately, as the 1-year reading of 0.51 lands near the 3-year figure. Over 5 years the correlation is 0.39, and the annualized covariance of weekly returns is 680.9 %².
Within CAT's tracked universe of 36 assets, GNRC comes in at #23 by 3-year correlation. Correlation aside, the last 12 months split them widely, with CAT ahead by 85.0 points (+90.5% versus +5.5%). The relationship is regime-dependent: the rolling one-year correlation swung between 0.17 and 0.73 over the past three years, so this pair behaves very differently depending on the market environment. Note the risk asymmetry: GNRC runs 1.6 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 GNRC: side by side
| CAT (Caterpillar Inc.) | GNRC (Generac) | |
|---|---|---|
| 1-year return | +90.5% | +5.5% |
| 5-year return | +321.1% | -55.4% |
| Volatility (ann.) | 29.4% | 46.1% |
| Beta vs S&P 500 | 1.03 | 1.35 |
| Max drawdown (3Y) | -34.0% | -47.8% |
| Market cap | $375.6B | $11.6B |
| P/E (trailing) | 35.3 | 47.4 |
| Dividend yield | 0.75% | 0.00% |
| Sector / category | Industrials | Industrials |
Year-by-year returns
| Year | CAT | GNRC |
|---|---|---|
| 2022 | +18.6% | -71.4% |
| 2023 | +25.9% | +28.4% |
| 2024 | +24.7% | +20.0% |
| 2025 | +60.3% | -12.0% |
| 2026 | +43.5% | +44.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAT and GNRC good diversifiers for each other?
To a limited degree. At 0.50 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between CAT and GNRC?
As of 2026-08-27, the correlation of weekly returns between CAT and GNRC is 0.50 over 3 years, 0.51 over 1 year and 0.39 over 5 years.
Is GNRC a good diversifier for CAT?
To a limited degree. At 0.50 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.50 mean?
On the −1 to +1 scale, 0.50 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/cat-vs-gnrc.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/cat-vs-gnrc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: CAT correlations · GNRC correlations
