Correlation Between Star Gas and Marathon Petroleum
Can any of the company-specific risk be diversified away by investing in both Star Gas and Marathon Petroleum 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 Star Gas and Marathon Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Star Gas Partners and Marathon Petroleum Corp, you can compare the effects of market volatilities on Star Gas and Marathon Petroleum 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 Star Gas with a short position of Marathon Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Star Gas and Marathon Petroleum.
Diversification Opportunities for Star Gas and Marathon Petroleum
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Star and Marathon is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Star Gas Partners and Marathon Petroleum Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marathon Petroleum Corp and Star Gas 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 Star Gas Partners are associated (or correlated) with Marathon Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marathon Petroleum Corp has no effect on the direction of Star Gas i.e., Star Gas and Marathon Petroleum go up and down completely randomly.
Pair Corralation between Star Gas and Marathon Petroleum
Considering the 90-day investment horizon Star Gas Partners is expected to generate 1.37 times more return on investment than Marathon Petroleum. However, Star Gas is 1.37 times more volatile than Marathon Petroleum Corp. It trades about 0.17 of its potential returns per unit of risk. Marathon Petroleum Corp is currently generating about 0.12 per unit of risk. If you would invest 1,149 in Star Gas Partners on August 24, 2024 and sell it today you would earn a total of 99.00 from holding Star Gas Partners or generate 8.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Star Gas Partners vs. Marathon Petroleum Corp
Performance |
| Timeline |
| Star Gas Partners |
| Marathon Petroleum Corp |
Star Gas and Marathon Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Star Gas and Marathon Petroleum
The main advantage of trading using opposite Star Gas and Marathon Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Star Gas position performs unexpectedly, Marathon Petroleum 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 Marathon Petroleum will offset losses from the drop in Marathon Petroleum's long position.| Star Gas vs. Ultrapar Participacoes SA | Star Gas vs. Par Pacific Holdings | Star Gas vs. Delek Energy | Star Gas vs. Crossamerica Partners LP |
| Marathon Petroleum vs. Phillips 66 | Marathon Petroleum vs. HF Sinclair Corp | Marathon Petroleum vs. PBF Energy | Marathon Petroleum vs. Sunoco LP |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |