Callon’s stock drivers
In this part of our series on Callon Petroleum (CPE), we’ll compare the company’s stock movements to movements in the broader market, crude prices, natural gas prices, and the US dollar index (or USDX).
As we noted previously, year-over-year, CPE stock has risen 98%. Meanwhile, peers SM Energy (SM), Sanchez Energy (SN), and Newfield Exploration (NFX) have risen 78%, 113%, and ~32%, respectively, in the same period. SM and NFX make up 1.8% of the First Trust Energy AlphaDEX (FXN).
As we can see in the graph above, Callon Petroleum was mostly on an uptrend in 2016, mirroring crude oil prices (USO).
The correlation coefficient between CPE’s stock price and WTI’s (West Texas Intermediate) price (USO) from January 2016 to the present is ~0.62, which indicates a strong positive correlation between the two.
Compared to the broader market, the S&P 500 ETF (SPY), CPE has overperformed. SPY has risen ~13% since January 2016. Compared to the US dollar index, the USDX has returned ~2.6% since January 2016.