In this part, we’ll analyze the correlation between National Oilwell Varco’s (NOV) stock price and West Texas Intermediate’s crude oil price. The correlation coefficient between National Oilwell Varco and crude oil’s price measures the statistical relationship between the two variables. A correlation coefficient value of 0 to 1 shows a positive correlation—0 states no correlation and -1 to 0 shows an inverse correlation.
How co-related are NOV and crude oil prices?
Correlation between NOV’s stock and crude oil
As noted in the above table, National Oilwell Varco’s correlation with crude oil prices has decreased marginally since the end of fiscal 1Q16 until July 8—compared to the past year. The VanEck Vectors Oil Services ETF’s (OIH) correlation with crude oil also decreased since April 1—compared to the correlation coefficient since July 2015. Helmerich & Payne’s (HP) correlation coefficient since April 1 is higher than National Oilwell Varco’s. National Oilwell Varco accounts for 0.26% of the WisdomTree High Dividend Fund (DHS).
Next, we’ll discuss Wall Street analysts’ recommendations for National Oilwell Varco.