What’s Tidewater’s Correlation with Crude Oil Prices?



Correlation coefficient

In this part, we’ll analyze the correlation between Tidewater’s (TDW) stock price and WTI (West Texas Intermediate) crude oil’s price. The correlation coefficient between Tidewater 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.

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Tidewater’s correlation with crude oil price

The correlation coefficient between Tidewater’s stock price and crude oil prices from January 2016 to January 2017 is 0.37. It indicates a fairly positive relationship between crude oil prices and Tidewater stock.

Correlation between Tidewater stock and crude oil

As noted in the above graph, the VanEck Vectors Oil Services ETF’s (OIH) correlation with crude oil since January 2016 is 0.72. OIH is an ETF tracking index of 25 OFS companies. Halliburton’s (HAL) correlation coefficient with crude oil since January 2016 is 0.67, while Weatherford International’s (WFT) correlation coefficient since January 2016 is 0.49. During the same period, Precision Drilling’s (PDS) correlation coefficient is 0.65.

Next, we’ll discuss Wall Street analysts’ recommendations for Tidewater.


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