Correlation Between Martin Midstream and International Seaways
Can any of the company-specific risk be diversified away by investing in both Martin Midstream and International Seaways 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 Martin Midstream and International Seaways into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Martin Midstream Partners and International Seaways, you can compare the effects of market volatilities on Martin Midstream and International Seaways 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 Martin Midstream with a short position of International Seaways. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Midstream and International Seaways.
Diversification Opportunities for Martin Midstream and International Seaways
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Martin and International is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Martin Midstream Partners and International Seaways in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Seaways and Martin Midstream 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 Martin Midstream Partners are associated (or correlated) with International Seaways. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Seaways has no effect on the direction of Martin Midstream i.e., Martin Midstream and International Seaways go up and down completely randomly.
Pair Corralation between Martin Midstream and International Seaways
Given the investment horizon of 90 days Martin Midstream Partners is expected to under-perform the International Seaways. In addition to that, Martin Midstream is 1.64 times more volatile than International Seaways. It trades about -0.12 of its total potential returns per unit of risk. International Seaways is currently generating about 0.22 per unit of volatility. If you would invest 4,083 in International Seaways on August 14, 2025 and sell it today you would earn a total of 1,257 from holding International Seaways or generate 30.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Martin Midstream Partners vs. International Seaways
Performance |
| Timeline |
| Martin Midstream Partners |
| International Seaways |
Martin Midstream and International Seaways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Midstream and International Seaways
The main advantage of trading using opposite Martin Midstream and International Seaways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Midstream position performs unexpectedly, International Seaways 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 International Seaways will offset losses from the drop in International Seaways' long position.| Martin Midstream vs. Empire Petroleum Corp | Martin Midstream vs. Imperial Petroleum | Martin Midstream vs. NCS Multistage Holdings | Martin Midstream vs. Epsilon Energy |
| International Seaways vs. Torm PLC Class | International Seaways vs. DHT Holdings | International Seaways vs. Oceaneering International | International Seaways vs. Liberty Oilfield Services |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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