These Natural-Gas-Weighted Stocks Are Ignoring Crude and Natural Gas
Between September 25 and October 2, 2017, our list of natural gas-weighted stocks rose 1.3% compared to a 2.4% fall in natural gas (FCG) (BOIL) November futures. Natural gas-weighted stocks that outperformed their peers over this time period are:
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In fact, RRC had the second smallest correlation with natural gas as well as US crude oil prices among the natural-gas-weighted stocks in the past five trading sessions. US crude oil futures fell 3.1% during this time period.
Natural-gas-weighted stocks that fell the most in the trailing week were:
These three natural-gas-weighted stocks had correlations of above 87% with US crude oil active futures in the past five trading sessions.
These natural-gas-weighted stocks operate with a minimum 60% production mix in natural gas. These stocks are from the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).
Returns since March 3, 2016
Between March 3, 2016, and October 2, 2017, our list of natural gas-weighted stocks rose 26.4%. US natural gas active futures recovered 77.9% from their 17-year low over this time period. However, natural gas ETFs that track natural gas futures such as the United States Natural Gas Fund LP ETF (UNG) rose 10.2% over this time period. This underperformance could be because of the negative roll yield.
Natural-gas-weighted stocks that rose the most during this time period are:
Natural-gas-weighted stocks that underperformed between these two dates are:
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