Search for another Company Symbol?

Volatility Analysis for Caterpillar

Prev. Co. Next Co.
CAT: Daily Volatility = Price Range as a percent of the daily average price.

This chart shows Volatility for Caterpillar, defined to be the price range as a portion of the average price:

For instance, on 1/11/2010 the average price was 62.63 with a range of 3.57, indicating a Daily Volatility of 5.7%. Daily Volatility (the daily range as a portion of the daily average price) is plotted in green. Blue is Weekly Volatility, which is the weekly range as a portion of the weekly average price. It is important to avoid confusing this with the weekly average of the daily volatility, which is a completely different concept.

The red plot shows the actual price. Volatility, as measured through various intervals, ( Daily, Weekly, Monthly and Quarterly) is plotted according to color.

According to academic theory, Volatility is exactly equal to Risk. But investors often make a distinction between these two concepts. The different character of Volatility as seen in different time frames, lends some support to the investor's view. During 30 years, the Average Quarterly Volatility of CAT stock price has been 24% while the Average Daily Volatility has been 2%.



Prev. Co. Next Co.
CAT: Volatility Curve

You may be familiar with the "yield curve" which shows how interest bearing yields vary according to term. Each Volatility Curve is a snapshot in time. From left to right, each position plots the Volatility associated with increasing intervals of time. The relationship between the length of time, and the expected change in price, is not linear, as is demonstrated by this chart.



Prev. Co. Next Co.
CAT: Daily Volatility Histogram

A frequency distribution of the green points on the first chart (the daily volatility) yields this histogram.



Prev. Co. Next Co.
CAT: Quarterly Volatility Histogram

Similarly, the purple points on the top chart, the Quarterly Volatility Values, are subjected to frequency distribution here.

For Subscribers: Refined Analysis of Caterpillar Volatility and Risk Behavior

Refined Volatility Risk Analysis for CAT :

Companies in the News:

In the news, Friday, February 05, 2010: A favorable condition has developed with United Technologies, ticker symbol UTX. Also, there are breaking events concerning ACM Income Fund (ACG) and MicroSoft (MSFT)

More CAT Technical Analysis Topics

CAT Price Predictions

Support and Resistance Levels

Volume Stratification Analysis

Politics and Prices of CAT

Japanese Candlestick Analysis

CAT Classical Analysis of Time Series

CAT Historical Volume

CAT Seasonal Trends

Back to CAT Table of Contents


Information on public pages is delayed. Associates of Hybrid Technical may hold positions in issues covered here. These reports are not to be used for stock-picking or investment decision support. Any such use is strictly prohibited.


Notice: Pages available to the public on this site are for entertainment and academic purposes only. We do not advocate investment in common stock. We do not recommend the purchase or sale of this or any other issue. Research shows that most people who invest in common stock will lose money. Charts and concepts are property of Hybrid Technical. All Rights Reserved. All Content is Copyright 2008 by Hybrid Technical

.