In this part, we’ll analyze the correlation between Schlumberger’s (SLB) stock price and the West Texas Intermediate (or WTI) crude oil price. The correlation coefficient between SLB and the crude oil price measures the statistical relationship between the two variables. A correlation coefficient value of zero to one shows a positive correlation. Zero states no correlation, and -1 to zero shows an inverse correlation.
What’s the correlation between Schlumberger and crude oil?
Correlation between SLB’s stock and crude oil
As noted in the table above, SLB’s correlation with crude oil has fallen since the end of 1Q16 until July 1 compared to the past year. The VanEck Vectors Oil Services ETF’s (OIH) correlation with crude oil has also decreased since April 1 versus the correlation coefficient since July 2015. Helmerich & Payne’s (HP) correlation coefficient since April 1 is higher than SLB’s. SLB makes up 1.2% of the iShares S&P 500 Value ETF (IVE).
Next, we’ll discuss Wall Street analysts’ recommendations for SLB.