CAT vs TYL: Correlation
How closely do Caterpillar Inc. (CAT) and Tyler Technologies (TYL) trade together? Their weekly returns over three years give a correlation of -0.15, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAT and TYL?
Over the past 3 years, CAT and TYL moved with a correlation of -0.15, which is negative, meaning they tend to move in opposite directions. The past 12 months show a weaker link (-0.56) than the 3-year average (-0.15). Over 5 years the correlation is 0.05, and the annualized covariance of weekly returns is -131.6 %².
Among the 36 assets we track against CAT, TYL ranks #26 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months CAT outperformed by 124.5 percentage points (+90.5% for CAT against -34.0% for TYL). This link changes with the market regime, having swung between -0.53 and 0.36 on a rolling one-year basis.
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 TYL: side by side
| CAT (Caterpillar Inc.) | TYL (Tyler Technologies) | |
|---|---|---|
| 1-year return | +90.5% | -34.0% |
| 5-year return | +321.1% | -22.5% |
| Volatility (ann.) | 29.4% | 29.6% |
| Beta vs S&P 500 | 1.03 | 0.61 |
| Max drawdown (3Y) | -34.0% | -57.4% |
| Market cap | $375.6B | $15.1B |
| P/E (trailing) | 35.3 | 46.3 |
| Dividend yield | 0.75% | 0.00% |
| Sector / category | Industrials | Information Technology |
Year-by-year returns
| Year | CAT | TYL |
|---|---|---|
| 2022 | +18.6% | -40.1% |
| 2023 | +25.9% | +29.7% |
| 2024 | +24.7% | +37.9% |
| 2025 | +60.3% | -21.3% |
| 2026 | +43.5% | -18.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAT and TYL good diversifiers for each other?
Yes: at -0.15, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between CAT and TYL?
Using weekly returns as of 2026-08-27: -0.15 over 3 years, with -0.56 over the last year and 0.05 over 5 years.
Is TYL a good diversifier for CAT?
Yes: at -0.15, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.15 mean?
A reading of -0.15 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-tyl.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/cat-vs-tyl/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: CAT correlations · TYL correlations
