Refining stocks’ betas
In this part, we’ll compare refining stocks’ betas. We’ll look at 90-day daily betas, which portray how much a stock varies for a given movement in the market for 90 days. Tesoro’s (TSO) 90-day beta stood at 1.7 on May 11, 2017. This was higher than Valero Energy’s (VLO), Marathon Petroleum’s (MPC), and Phillips 66’s (PSX). PSX had the lowest beta, with 1.3.
Changes in beta
On April 11, 2017, TSO’s and PSX’s betas were lower than they were in May, implying that their volatility, in relation to the broader market, has risen lately. For refining and marketing sector exposure, you could consider the iShares US Energy ETF (IYE), which has an ~8% exposure to the sector’s stocks in its portfolio. In the next part, we’ll look at changes in refining stocks’ institutional holdings.