Correlation Between Murphy USA and MarineMax
Can any of the company-specific risk be diversified away by investing in both Murphy USA and MarineMax 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 Murphy USA and MarineMax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Murphy USA and MarineMax, you can compare the effects of market volatilities on Murphy USA and MarineMax 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 Murphy USA with a short position of MarineMax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Murphy USA and MarineMax.
Diversification Opportunities for Murphy USA and MarineMax
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Murphy and MarineMax is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Murphy USA and MarineMax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MarineMax and Murphy USA 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 Murphy USA are associated (or correlated) with MarineMax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MarineMax has no effect on the direction of Murphy USA i.e., Murphy USA and MarineMax go up and down completely randomly.
Pair Corralation between Murphy USA and MarineMax
Given the investment horizon of 90 days Murphy USA is expected to generate 0.56 times more return on investment than MarineMax. However, Murphy USA is 1.77 times less risky than MarineMax. It trades about 0.07 of its potential returns per unit of risk. MarineMax is currently generating about -0.24 per unit of risk. If you would invest 48,636 in Murphy USA on January 15, 2025 and sell it today you would earn a total of 2,756 from holding Murphy USA or generate 5.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Murphy USA vs. MarineMax
Performance |
| Timeline |
| Murphy USA |
| MarineMax |
Murphy USA and MarineMax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Murphy USA and MarineMax
The main advantage of trading using opposite Murphy USA and MarineMax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Murphy USA position performs unexpectedly, MarineMax 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 MarineMax will offset losses from the drop in MarineMax's long position.| Murphy USA vs. Group 1 Automotive | Murphy USA vs. Murphy Oil | Murphy USA vs. LCI Industries | Murphy USA vs. Penske Automotive Group |
| MarineMax vs. National Vision Holdings | MarineMax vs. Sally Beauty Holdings | MarineMax vs. Sportsmans | MarineMax vs. 1 800 FLOWERSCOM |
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 CEOs Directory module to screen CEOs from public companies around the world.
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