Correlation Between MarineMax and Murphy USA
Can any of the company-specific risk be diversified away by investing in both MarineMax and Murphy USA at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining MarineMax and Murphy USA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MarineMax and Murphy USA, you can compare the effects of market volatilities on MarineMax and Murphy USA and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in MarineMax with a short position of Murphy USA. Check out your portfolio center. Please also check ongoing floating volatility patterns of MarineMax and Murphy USA.
Diversification Opportunities for MarineMax and Murphy USA
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between MarineMax and Murphy is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding MarineMax and Murphy USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Murphy USA and MarineMax is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on MarineMax are associated (or correlated) with Murphy USA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Murphy USA has no effect on the direction of MarineMax i.e., MarineMax and Murphy USA go up and down completely randomly.
Pair Corralation between MarineMax and Murphy USA
Considering the 90-day investment horizon MarineMax is expected to generate 1.28 times less return on investment than Murphy USA. In addition to that, MarineMax is 2.52 times more volatile than Murphy USA. It trades about 0.03 of its total potential returns per unit of risk. Murphy USA is currently generating about 0.1 per unit of volatility. If you would invest 50,927 in Murphy USA on August 31, 2024 and sell it today you would earn a total of 4,412 from holding Murphy USA or generate 8.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MarineMax vs. Murphy USA
Performance |
| Timeline |
| MarineMax |
| Murphy USA |
MarineMax and Murphy USA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MarineMax and Murphy USA
The main advantage of trading using opposite MarineMax and Murphy USA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MarineMax position performs unexpectedly, Murphy USA can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Murphy USA will offset losses from the drop in Murphy USA's long position.| MarineMax vs. National Vision Holdings | MarineMax vs. Sally Beauty Holdings | MarineMax vs. Sportsmans | MarineMax vs. 1 800 FLOWERSCOM |
| Murphy USA vs. Group 1 Automotive | Murphy USA vs. Murphy Oil | Murphy USA vs. LCI Industries | Murphy USA vs. Penske Automotive Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |