CAT vs VTV: Correlation
Measured on weekly returns over the past three years, Caterpillar Inc. (CAT) and Vanguard Value ETF (VTV) carry a correlation of 0.62, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAT and VTV?
Across a 3-year window, the weekly returns of CAT and VTV correlate at 0.62, strong. Lately the two have drifted apart, with the 1-year correlation at 0.45 versus 0.62 over 3 years. Stretching to 5 years gives 0.65, with an annualized covariance of 218.8 %².
Within CAT's tracked universe of 36 assets, VTV comes in at #7 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months CAT outperformed by 64.8 percentage points (+90.5% for CAT against +25.7% for VTV). On a rolling one-year basis the correlation drifted between 0.41 and 0.79, a moderate band. Note the risk asymmetry: CAT runs 2.5 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 VTV: side by side
| CAT (Caterpillar Inc.) | VTV (Vanguard Value ETF) | |
|---|---|---|
| 1-year return | +90.5% | +25.7% |
| 5-year return | +321.1% | +79.1% |
| Volatility (ann.) | 29.4% | 11.9% |
| Beta vs S&P 500 | 1.03 | 0.65 |
| Max drawdown (3Y) | -34.0% | -14.5% |
| Market cap | $375.6B | – |
| P/E (trailing) | 35.3 | – |
| Dividend yield | 0.75% | 1.86% |
| Expense ratio | – | 0.03% |
| Assets under management | – | $256.4B |
| Sector / category | Industrials | ETF · US Style |
On the fund side, VTV sits in the Large Value category at Vanguard, with $256.4B under management, 308 holdings, a 0.03% expense ratio, a 1.86% trailing dividend yield.
Year-by-year returns
| Year | CAT | VTV |
|---|---|---|
| 2022 | +18.6% | -2.1% |
| 2023 | +25.9% | +9.3% |
| 2024 | +24.7% | +16.0% |
| 2025 | +60.3% | +15.3% |
| 2026 | +43.5% | +19.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
CAT represents 1.4% of VTV's portfolio, so part of any move in VTV is CAT itself, and the correlation between them is partly mechanical.
Are CAT and VTV good diversifiers for each other?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between CAT and VTV?
As of 2026-08-27, the correlation of weekly returns between CAT and VTV is 0.62 over 3 years, 0.45 over 1 year and 0.65 over 5 years.
Is VTV a good diversifier for CAT?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.62 mean?
On the −1 to +1 scale, 0.62 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-vtv.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/cat-vs-vtv/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: CAT correlations · VTV correlations
