Continental Resources’ stock drivers
In this part of our series on Continental Resources (CLR), we’ll compare the company’s stock movements with respect to movements in the broader market, crude prices, natural gas prices, and the US dollar index (or USDX).
As noted previously in this series, Continental Resources’ stock has risen by almost 97% year-over-year. CLR’s upstream peers Cimarex Energy (XEC), Concho Resources (CXO), and Hess (HES) have risen 34%, 34.4%, and 26%, respectively, in the same period.
As we saw in a previous series, Continental Resources’ (CLR) stock has been on an uptrend, mirroring crude oil price movements. In the image above, it’s clear that its performance has been driven mainly by WTI (West Texas Intermediate) crude oil prices and natural gas prices.
The correlation coefficient between CLR’s stock price and crude oil prices (USO) from December 2015 to the present is ~0.65. This indicates a strong positive correlation between the two. The graph also indicates that CLR stock has given higher returns compared to WTI’s returns on a year-over-year basis.
When compared to the broader market, the S&P 500 ETF (SPY), CLR has outperformed SPY. Since December 2015, SPY has returned ~11%.
To see how CLR’s moving averages have performed, read How Has Continental Resources’ Stock Performed this Year?