CAT vs TEX: Correlation
Caterpillar Inc. (CAT) and Terex Corporation (TEX) show a strong relationship: their 3-year correlation of weekly returns is 0.60.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAT and TEX?
Across a 3-year window, the weekly returns of CAT and TEX correlate at 0.60, strong. The past 12 months show a weaker link (0.37) than the 3-year average (0.60). Stretching to 5 years gives 0.66, with an annualized covariance of 722.4 %².
Within CAT's tracked universe of 36 assets, TEX comes in at #15 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months CAT outperformed by 66.3 percentage points (+90.5% for CAT against +24.2% for TEX).
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 TEX: side by side
| CAT (Caterpillar Inc.) | TEX (Terex Corporation) | |
|---|---|---|
| 1-year return | +90.5% | +24.2% |
| 5-year return | +321.1% | +31.7% |
| Volatility (ann.) | 29.4% | 41.0% |
| Beta vs S&P 500 | 1.03 | 1.38 |
| Max drawdown (3Y) | -34.0% | -51.3% |
| Market cap | $375.6B | $7.4B |
| P/E (trailing) | 35.3 | 31.2 |
| Dividend yield | 0.75% | 1.04% |
| Sector / category | Industrials | US Listed |
Year-by-year returns
| Year | CAT | TEX |
|---|---|---|
| 2022 | +18.6% | -1.4% |
| 2023 | +25.9% | +36.1% |
| 2024 | +24.7% | -18.6% |
| 2025 | +60.3% | +17.3% |
| 2026 | +43.5% | +21.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAT and TEX good diversifiers for each other?
Somewhat, no more. With 0.60 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between CAT and TEX?
As of 2026-08-27, the correlation of weekly returns between CAT and TEX is 0.60 over 3 years, 0.37 over 1 year and 0.66 over 5 years.
Is TEX a good diversifier for CAT?
Somewhat, no more. With 0.60 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.60 mean?
On the −1 to +1 scale, 0.60 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-tex.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/cat-vs-tex/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: CAT correlations · TEX correlations
