Natural Gas–Weighted Stocks That Are Correlated with Oil
- WPX Energy (WPX): 94.5%
- Antero Resources (AR): 94.1%
- Rice Energy (RICE): 93.3%
- Cabot Oil & Gas (COG): 91.7%
- EQT Corp. (EQT): 90.8%
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These natural gas–weighted stocks are from the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). Also, these oil-weighted stocks operate with a minimum 60% production mix in natural gas.
The natural gas–weighted stocks that had the lowest correlations with oil prices during this period are:
These two stocks had the highest correlation with natural gas prices in the past five trading sessions. We discussed this topic in Part 3 of this series.
Oil’s role in driving natural gas–weighted stocks
Oil is important to the energy sector. Natural gas prices often follow the dynamics in oil prices. On a short-term basis, oil’s role could be vital. In the final part of this series, we’ll discuss the returns of these natural gas–weighted stocks.