X
<

Analyzing Schlumberger's Earnings prior to Its 1Q17 Results

PART:
1 2 3 4 5 6 7 8 9
Part 7
Analyzing Schlumberger's Earnings prior to Its 1Q17 Results PART 7 OF 9

What’s Schlumberger’s Correlation with Crude Oil?

Correlation coefficient

In this article, we’ll analyze the correlation between Schlumberger’s (SLB) stock price and West Texas Intermediate (or WTI) crude oil’s price. 

The correlation coefficient between SLB’s and crude oil’s prices measures the statistical relationship between the two variables. A correlation coefficient of 0 to 1 shows a positive correlation, 0 shows no correlation, and -1 to 0 shows an inverse correlation.

What&#8217;s Schlumberger’s Correlation with Crude Oil?

Interested in CLB? Don't miss the next report.

Receive e-mail alerts for new research on CLB

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Schlumberger’s correlation with crude oil’s price

The correlation coefficient between Schlumberger’s stock price and crude oil’s price from April 5, 2016, to April 5, 2017, was 0.63. This indicated a relatively strong positive relationship between crude oil and Schlumberger stock.

Peer comparison

As we can see in the graph above, the VanEck Vectors Oil Services ETF’s (OIH) correlation with crude oil since April 2016 is 0.72. OIH is an ETF tracking an index of 25 oilfield equipment and services companies.

CARBO Ceramics’ (CRR) correlation coefficient since April 2016 is 0.45, while Core Laboratories’ (CLB) correlation coefficient since April 2016 is 0.57. Precision Drilling’s (PDS) correlation coefficient for the same period is ~0.65.

We’ll discuss Schlumberger’s implied volatility in the next article.

X

Please select a profession that best describes you: