CAT vs VYM: Correlation
Measured on weekly returns over the past three years, Caterpillar Inc. (CAT) and Vanguard High Dividend Yield ETF (VYM) 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 VYM?
Over the past 3 years, CAT and VYM moved with a correlation of 0.62, which is strong. The past 12 months show a weaker link (0.46) than the 3-year average (0.62). Over 5 years the correlation is 0.65, and the annualized covariance of weekly returns is 223.3 %².
Within CAT's tracked universe of 36 assets, VYM comes in at #8 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months CAT outperformed by 69.4 percentage points (+90.5% for CAT against +21.1% for VYM). Across three years, the rolling one-year figure varied moderately, from 0.41 to 0.79. Risk is not evenly split, since CAT carries 2.4 times the volatility of the other side.
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 VYM: side by side
| CAT (Caterpillar Inc.) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | +90.5% | +21.1% |
| 5-year return | +321.1% | +76.6% |
| Volatility (ann.) | 29.4% | 12.3% |
| Beta vs S&P 500 | 1.03 | 0.69 |
| Max drawdown (3Y) | -34.0% | -14.5% |
| Market cap | $375.6B | – |
| P/E (trailing) | 35.3 | – |
| Dividend yield | 0.75% | 2.24% |
| Expense ratio | – | 0.04% |
| Assets under management | – | $99.2B |
| Sector / category | Industrials | ETF · Dividend |
VYM, Vanguard's Large Value fund, carries $99.2B under management, 604 holdings, a 0.04% expense ratio, a 2.24% trailing dividend yield.
Year-by-year returns
| Year | CAT | VYM |
|---|---|---|
| 2022 | +18.6% | -0.4% |
| 2023 | +25.9% | +6.6% |
| 2024 | +24.7% | +17.6% |
| 2025 | +60.3% | +15.4% |
| 2026 | +43.5% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 1.51% of VYM is CAT itself, so the fund partly moves with the stock by construction.
Are CAT and VYM good diversifiers for each other?
Only partially. A correlation of 0.62 means CAT and VYM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between CAT and VYM?
As of 2026-08-27, the correlation of weekly returns between CAT and VYM is 0.62 over 3 years, 0.46 over 1 year and 0.65 over 5 years.
Is VYM a good diversifier for CAT?
Only partially. A correlation of 0.62 means CAT and VYM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.62 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
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Related comparisons
Hubs: CAT correlations · VYM correlations
