CAT vs PWR: Correlation
Caterpillar Inc. (CAT) and Quanta Services (PWR) show a moderate relationship: their 3-year correlation of weekly returns is 0.58.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAT and PWR?
Over the past 3 years, CAT and PWR moved with a correlation of 0.58, which is moderate. The past 12 months show a weaker link (0.46) than the 3-year average (0.58). Over 5 years the correlation is 0.55, and the annualized covariance of weekly returns is 578.3 %².
By 3-year correlation, PWR places #16 of the 36 assets tracked against CAT. Correlation aside, the last 12 months split them widely, with CAT ahead by 27.4 points (+90.5% versus +63.1%). Across three years, the rolling one-year figure varied moderately, from 0.43 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 PWR: side by side
| CAT (Caterpillar Inc.) | PWR (Quanta Services) | |
|---|---|---|
| 1-year return | +90.5% | +63.1% |
| 5-year return | +321.1% | +506.1% |
| Volatility (ann.) | 29.4% | 33.9% |
| Beta vs S&P 500 | 1.03 | 1.29 |
| Max drawdown (3Y) | -34.0% | -33.9% |
| Market cap | $375.6B | $93.5B |
| P/E (trailing) | 35.3 | 70.4 |
| Dividend yield | 0.75% | 0.07% |
| Sector / category | Industrials | Industrials |
Year-by-year returns
| Year | CAT | PWR |
|---|---|---|
| 2022 | +18.6% | +24.6% |
| 2023 | +25.9% | +51.7% |
| 2024 | +24.7% | +46.6% |
| 2025 | +60.3% | +33.7% |
| 2026 | +43.5% | +47.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAT and PWR good diversifiers for each other?
Somewhat, no more. With 0.58 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between CAT and PWR?
The CAT/PWR correlation stands at 0.58 on a 3-year window (1 year: 0.46, 5 years: 0.55), computed from weekly returns as of 2026-08-27.
Is PWR a good diversifier for CAT?
Somewhat, no more. With 0.58 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.58 mean?
On the −1 to +1 scale, 0.58 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-pwr.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/cat-vs-pwr/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: CAT correlations · PWR correlations
