Correlation between Schlumberger and crude oil
In this part, we’ll analyze the correlation between Schlumberger’s (SLB) stock price and WTI (West Texas Intermediate) crude oil prices. The correlation coefficient between Schlumberger’s stock price and crude oil prices from June 9, 2016, to June 9, 2017, is 0.64. The correlation coefficient indicates a strong positive relationship between Schlumberger stock and crude oil prices.
Correlation between Schlumberger’s peers and crude oil
As noted in the above table, the VanEck Vectors Oil Services ETF’s (OIH) correlation with crude oil since June 9, 2016, is 0.74. OIH tracks an index of 25 OFS (oilfield equipment and services) companies. Nabors Industries’ (NBR) correlation coefficient since June 9, 2016, is 0.65, while CARBO Ceramics’ (CRR) correlation coefficient since June 9, 2016, is 0.46. During the same period, Oceaneering International’s (OII) correlation coefficient is 0.62.
To learn more about the OFS industry, read The Oilfield Equipment and Services Industry: A Primer.