Correlation Between Calumet Specialty and Martin Midstream
Can any of the company-specific risk be diversified away by investing in both Calumet Specialty 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 Calumet Specialty and Martin Midstream into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calumet Specialty Products and Martin Midstream Partners, you can compare the effects of market volatilities on Calumet Specialty 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 Calumet Specialty with a short position of Martin Midstream. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calumet Specialty and Martin Midstream.
Diversification Opportunities for Calumet Specialty and Martin Midstream
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calumet and Martin is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Calumet Specialty Products 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 Calumet Specialty 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 Calumet Specialty Products 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 Calumet Specialty i.e., Calumet Specialty and Martin Midstream go up and down completely randomly.
Pair Corralation between Calumet Specialty and Martin Midstream
Given the investment horizon of 90 days Calumet Specialty Products is expected to generate 1.55 times more return on investment than Martin Midstream. However, Calumet Specialty is 1.55 times more volatile than Martin Midstream Partners. It trades about 0.11 of its potential returns per unit of risk. Martin Midstream Partners is currently generating about 0.1 per unit of risk. If you would invest 1,335 in Calumet Specialty Products on June 1, 2025 and sell it today you would earn a total of 295.00 from holding Calumet Specialty Products or generate 22.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calumet Specialty Products vs. Martin Midstream Partners
Performance |
| Timeline |
| Calumet Specialty |
| Martin Midstream Partners |
Calumet Specialty and Martin Midstream Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calumet Specialty and Martin Midstream
The main advantage of trading using opposite Calumet Specialty and Martin Midstream positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calumet Specialty 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.| Calumet Specialty vs. Amplify Energy Corp | Calumet Specialty vs. Granite Ridge Resources | Calumet Specialty vs. Battalion Oil Corp | Calumet Specialty vs. California Resources Corp |
| Martin Midstream vs. Calumet Specialty Products | Martin Midstream vs. Genesis Energy LP | Martin Midstream vs. Global Partners LP |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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