Correlation Between IRPC Public and Marathon Petroleum
Can any of the company-specific risk be diversified away by investing in both IRPC Public 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 IRPC Public and Marathon Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IRPC Public and Marathon Petroleum Corp, you can compare the effects of market volatilities on IRPC Public 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 IRPC Public with a short position of Marathon Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of IRPC Public and Marathon Petroleum.
Diversification Opportunities for IRPC Public and Marathon Petroleum
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between IRPC and Marathon is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding IRPC Public 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 IRPC Public 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 IRPC Public 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 IRPC Public i.e., IRPC Public and Marathon Petroleum go up and down completely randomly.
Pair Corralation between IRPC Public and Marathon Petroleum
Assuming the 90 days trading horizon IRPC Public is expected to generate 0.85 times more return on investment than Marathon Petroleum. However, IRPC Public is 1.18 times less risky than Marathon Petroleum. It trades about 0.05 of its potential returns per unit of risk. Marathon Petroleum Corp is currently generating about 0.04 per unit of risk. If you would invest 3.30 in IRPC Public on September 12, 2024 and sell it today you would earn a total of 0.05 from holding IRPC Public or generate 1.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
IRPC Public vs. Marathon Petroleum Corp
Performance |
| Timeline |
| IRPC Public |
| Marathon Petroleum Corp |
IRPC Public and Marathon Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IRPC Public and Marathon Petroleum
The main advantage of trading using opposite IRPC Public and Marathon Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IRPC Public 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.| IRPC Public vs. IRPC PCL NVDR | IRPC Public vs. Sinopec Shanghai Petrochemical | IRPC Public vs. China Petroleum Chemical | IRPC Public vs. PetroChina Company Limited |
| Marathon Petroleum vs. Iridium Communications | Marathon Petroleum vs. CVS Health | Marathon Petroleum vs. CHINA TELECOM H | Marathon Petroleum vs. FEMALE HEALTH |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |