Correlation Between Marathon Petroleum and Energy Transfer

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

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

Diversification Opportunities for Marathon Petroleum and Energy Transfer

0.52

Correlation Coefficient

Marathon Petroleum  Energy Transfer

Very weak diversification

The 3 months correlation between Marathon and Energy is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Marathon Petroleum Corp and Energy Transfer LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Transfer LP and Marathon Petroleum 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 Marathon Petroleum Corp are associated (or correlated) with Energy Transfer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Transfer LP has no effect on the direction of Marathon Petroleum i.e., Marathon Petroleum and Energy Transfer go up and down completely randomly.

Pair Corralation between Marathon Petroleum and Energy Transfer

Considering the 90-day investment horizon Marathon Petroleum Corp is expected to under-perform the Energy Transfer. In addition to that, Marathon Petroleum is 1.87 times more volatile than Energy Transfer LP. It trades about -0.12 of its total potential returns per unit of risk. Energy Transfer LP is currently generating about 0.03 per unit of volatility. If you would invest  1,633  in Energy Transfer LP on October 6, 2025 and sell it today you would earn a total of  26.00  from holding Energy Transfer LP or generate 1.59% return on investment over 90 days.

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

Marathon Petroleum Corp  vs.  Energy Transfer LP

Marathon Petroleum Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Marathon Petroleum Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in February 2026. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Energy Transfer LP

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Energy Transfer LP are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Energy Transfer is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Marathon Petroleum and Energy Transfer

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

The idea behind Marathon Petroleum Corp and Energy Transfer LP 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..