How Does Marathon Petroleum’s Beta Compare to Peers?



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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