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How Does Marathon Petroleum’s Beta Compare to Peers?

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Marathon Petroleum’s beta

In this part, we’ll compare Marathon Petroleum’s (MPC) beta with its peers as well with its past average. Below, we have considered the 90-day beta, which depicts how much a stock moves for any given move in the market daily over 90 days. Similarly, the beta for the past five years has been considered during a five-year average.

Marathon Petroleum’s 90-day beta stood at 1.8 on February 20, 2017, which is above its five-year average of 1.7. MPC’s 90-day beta was the highest among peers Tesoro (TSO), Valero Energy (VLO), and Phillips 66 (PSX). Phillips 66 had the lowest 90-day beta standing at 1.1.

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Peer betas

VLO and TSO had 90-day betas of 1.4 and 1.2, respectively. While VLO and MPC’s 90-day beta stood above their five-year average betas, TSO and PSX’s 90-day beta stood below their averages.

Notably, for exposure to refining sector stocks, investors might consider the iShares Global Energy ETF (IXC). The ETF has ~5% exposure to the sector.

Continue to the next part for a closer look at short interest.

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