Correlation Between Blue Dolphin and Marathon Petroleum

Can any of the company-specific risk be diversified away by investing in both Blue Dolphin 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 Blue Dolphin and Marathon Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Blue Dolphin Energy and Marathon Petroleum Corp, you can compare the effects of market volatilities on Blue Dolphin 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 Blue Dolphin with a short position of Marathon Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Dolphin and Marathon Petroleum.

Diversification Opportunities for Blue Dolphin and Marathon Petroleum

0.0

Correlation Coefficient

Blue Dolphin  Marathon Petroleum

Pay attention - limited upside

The 3 months correlation between Blue and Marathon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Blue Dolphin Energy 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 Blue Dolphin 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 Blue Dolphin Energy 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 Blue Dolphin i.e., Blue Dolphin and Marathon Petroleum go up and down completely randomly.

Pair Corralation between Blue Dolphin and Marathon Petroleum

If you would invest  14,387  in Marathon Petroleum Corp on May 7, 2025 and sell it today you would earn a total of  2,409  from holding Marathon Petroleum Corp or generate 16.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Blue Dolphin Energy  vs.  Marathon Petroleum Corp

Blue Dolphin Energy

Risk-Adjusted Performance

Weakest

Over the last 90 days Blue Dolphin Energy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Blue Dolphin is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Marathon Petroleum Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Marathon Petroleum Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Marathon Petroleum exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Blue Dolphin and Marathon Petroleum

The main advantage of trading using opposite Blue Dolphin and Marathon Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Dolphin 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.

The idea behind Blue Dolphin Energy and Marathon Petroleum Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.