In this article, we’ll analyze the correlation between Patterson-UTI Energy’s (PTEN) stock price and West Texas Intermediate (or WTI) crude oil’s price.
The correlation coefficient between the stock’s price 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 shows no correlation, and -1 to 0 shows an inverse correlation.
Patterson-UTI Energy’s correlation with crude oil’s price
The correlation coefficient of Patterson-UTI Energy’s stock price and crude oil’s price from February 2016 to February 2017 is 0.63. This value indicates a relatively steady positive relationship between crude oil and PTEN.
Correlations among OFS stocks and crude oil
As noted in the graph above, the VanEck Vectors Oil Services ETF’s (OIH) correlation with crude oil since February 2016 is 0.71. Nabors Industries’ (NBR) correlation coefficient with crude oil since February 2016 is 0.63, while Schlumberger’s (SLB) correlation coefficient with crude oil since February 2016 is 0.62. Tidewater’s (TDW) correlation coefficient with crude oil since February 2016 is 0.36.
Next, we’ll discuss Wall Street analysts’ recommendations for PTEN.