Correlation Between Tres Tentos and Marathon Petroleum
Can any of the company-specific risk be diversified away by investing in both Tres Tentos 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 Tres Tentos and Marathon Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tres Tentos Agroindustrial and Marathon Petroleum, you can compare the effects of market volatilities on Tres Tentos 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 Tres Tentos with a short position of Marathon Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tres Tentos and Marathon Petroleum.
Diversification Opportunities for Tres Tentos and Marathon Petroleum
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tres and Marathon is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Tres Tentos Agroindustrial and Marathon Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marathon Petroleum and Tres Tentos 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 Tres Tentos Agroindustrial 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 has no effect on the direction of Tres Tentos i.e., Tres Tentos and Marathon Petroleum go up and down completely randomly.
Pair Corralation between Tres Tentos and Marathon Petroleum
Assuming the 90 days trading horizon Tres Tentos Agroindustrial is expected to generate 2.4 times more return on investment than Marathon Petroleum. However, Tres Tentos is 2.4 times more volatile than Marathon Petroleum. It trades about 0.19 of its potential returns per unit of risk. Marathon Petroleum is currently generating about 0.08 per unit of risk. If you would invest 1,131 in Tres Tentos Agroindustrial on August 31, 2024 and sell it today you would earn a total of 186.00 from holding Tres Tentos Agroindustrial or generate 16.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tres Tentos Agroindustrial vs. Marathon Petroleum
Performance |
| Timeline |
| Tres Tentos Agroindu |
| Marathon Petroleum |
Tres Tentos and Marathon Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tres Tentos and Marathon Petroleum
The main advantage of trading using opposite Tres Tentos and Marathon Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tres Tentos 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.| Tres Tentos vs. Ambipar Participaes e | Tres Tentos vs. Vamos Locao de | Tres Tentos vs. Petroreconcavo SA | Tres Tentos vs. Fras le SA |
| Marathon Petroleum vs. Charter Communications | Marathon Petroleum vs. Tres Tentos Agroindustrial | Marathon Petroleum vs. METISA Metalrgica Timboense | Marathon Petroleum vs. Mangels Industrial SA |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |