CAT vs ITT: Correlation
How closely do Caterpillar Inc. (CAT) and ITT Inc. (ITT) trade together? Their weekly returns over three years give a correlation of 0.65, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAT and ITT?
On 3 years of weekly data the CAT/ITT correlation comes out at 0.65, strong. Recent behaviour matches the longer record: 0.56 over 1 year against 0.65 over 3. The 5-year figure is 0.62, and annualized covariance runs at 524.6 %².
Few assets follow CAT as closely as ITT, which ranks #2 of 36 tracked partners. Their recent paths diverged sharply: over the last 12 months CAT outperformed by 69.7 percentage points (+90.5% for CAT against +20.8% for ITT).
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 ITT: side by side
| CAT (Caterpillar Inc.) | ITT (ITT Inc.) | |
|---|---|---|
| 1-year return | +90.5% | +20.8% |
| 5-year return | +321.1% | +124.4% |
| Volatility (ann.) | 29.4% | 27.4% |
| Beta vs S&P 500 | 1.03 | 1.33 |
| Max drawdown (3Y) | -34.0% | -29.1% |
| Market cap | $375.6B | – |
| P/E (trailing) | 35.3 | 40.9 |
| Dividend yield | 0.75% | 0.70% |
| Sector / category | Industrials | US Listed |
Year-by-year returns
| Year | CAT | ITT |
|---|---|---|
| 2022 | +18.6% | -19.5% |
| 2023 | +25.9% | +48.9% |
| 2024 | +24.7% | +20.9% |
| 2025 | +60.3% | +22.5% |
| 2026 | +43.5% | +20.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAT and ITT good diversifiers for each other?
Only partially. A correlation of 0.65 means CAT and ITT 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 ITT?
The CAT/ITT correlation stands at 0.65 on a 3-year window (1 year: 0.56, 5 years: 0.62), computed from weekly returns as of 2026-08-27.
Is ITT a good diversifier for CAT?
Only partially. A correlation of 0.65 means CAT and ITT share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.65 mean?
A reading of 0.65 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/cat-vs-itt.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/cat-vs-itt/)
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Related comparisons
Hubs: CAT correlations · ITT correlations
