Correlation Between FTC Solar and Martin Midstream

Can any of the company-specific risk be diversified away by investing in both FTC Solar and Martin Midstream 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 FTC Solar and Martin Midstream into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between FTC Solar and Martin Midstream Partners, you can compare the effects of market volatilities on FTC Solar and Martin Midstream 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 FTC Solar with a short position of Martin Midstream. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTC Solar and Martin Midstream.

Diversification Opportunities for FTC Solar and Martin Midstream

-0.79

Correlation Coefficient

FTC Solar  Martin Midstream

Pay attention - limited upside

The 3 months correlation between FTC and Martin is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding FTC Solar and Martin Midstream Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Martin Midstream Partners and FTC Solar 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 FTC Solar are associated (or correlated) with Martin Midstream. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Martin Midstream Partners has no effect on the direction of FTC Solar i.e., FTC Solar and Martin Midstream go up and down completely randomly.

Pair Corralation between FTC Solar and Martin Midstream

Given the investment horizon of 90 days FTC Solar is expected to generate 2.38 times more return on investment than Martin Midstream. However, FTC Solar is 2.38 times more volatile than Martin Midstream Partners. It trades about 0.16 of its potential returns per unit of risk. Martin Midstream Partners is currently generating about -0.09 per unit of risk. If you would invest  542.00  in FTC Solar on August 19, 2025 and sell it today you would earn a total of  501.00  from holding FTC Solar or generate 92.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

FTC Solar  vs.  Martin Midstream Partners

FTC Solar

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in FTC Solar are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak fundamental indicators, FTC Solar demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Martin Midstream Partners

Risk-Adjusted Performance

Weakest

Over the last 90 days Martin Midstream Partners has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's essential indicators remain relatively invariable which may send shares a bit higher in December 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with FTC Solar and Martin Midstream

The main advantage of trading using opposite FTC Solar and Martin Midstream positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTC Solar position performs unexpectedly, Martin Midstream 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 Martin Midstream will offset losses from the drop in Martin Midstream's long position.

The idea behind FTC Solar and Martin Midstream Partners 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.

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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 Commodity Directory module to find actively traded commodities issued by global exchanges.