CAT vs LII: Correlation
Caterpillar Inc. (CAT) and Lennox International (LII) show a moderate relationship: their 3-year correlation of weekly returns is 0.56.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAT and LII?
On 3 years of weekly data the CAT/LII correlation comes out at 0.56, moderate. The relationship has been stable: the 1-year correlation (0.66) sits close to the 3-year figure. The 5-year figure is 0.48, and annualized covariance runs at 529.8 %².
Among the 36 assets we track against CAT, LII ranks #18 by 3-year correlation. The last year tells two different stories: CAT led by 120.8 percentage points, +90.5% for CAT against -30.3% for LII. On a rolling one-year basis the correlation drifted between 0.29 and 0.67, a moderate band.
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 LII: side by side
| CAT (Caterpillar Inc.) | LII (Lennox International) | |
|---|---|---|
| 1-year return | +90.5% | -30.3% |
| 5-year return | +321.1% | +23.7% |
| Volatility (ann.) | 29.4% | 32.0% |
| Beta vs S&P 500 | 1.03 | 0.96 |
| Max drawdown (3Y) | -34.0% | -41.7% |
| Market cap | $375.6B | $13.5B |
| P/E (trailing) | 35.3 | 17.5 |
| Dividend yield | 0.75% | 1.34% |
| Sector / category | Industrials | Industrials |
Year-by-year returns
| Year | CAT | LII |
|---|---|---|
| 2022 | +18.6% | -24.9% |
| 2023 | +25.9% | +89.5% |
| 2024 | +24.7% | +37.3% |
| 2025 | +60.3% | -19.5% |
| 2026 | +43.5% | -19.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAT and LII good diversifiers for each other?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between CAT and LII?
As of 2026-08-27, the correlation of weekly returns between CAT and LII is 0.56 over 3 years, 0.66 over 1 year and 0.48 over 5 years.
Is LII a good diversifier for CAT?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.56 mean?
On the −1 to +1 scale, 0.56 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-lii.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/cat-vs-lii/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: CAT correlations · LII correlations
