Oasis Petroleum’s stock performance
Like many energy stocks, Oasis Petroleum (OAS) hasn’t seen the best of times this year. Since the beginning of the year, Oasis Petroleum has fallen 51%. Crude oil prices (DBO) (UCO) have fallen 11% since January, while natural gas prices have fallen 7%.
As you can see in the above graph, Oasis Petroleum stock has been mirroring crude oil prices (UCO) and natural gas prices (UNG). The prices have also been driving the Energy Select Sector SPDR ETF (XLE).
XLE has returned -14% since the beginning of the year. The correlation between Oasis Petroleum stock and crude oil prices is ~0.89. The correlation between Oasis Petroleum stock and natural gas prices is ~0.27.
“Correlation” is a statistical estimation of how two variables move in tandem with each other. In Oasis Petroleum’s case, movements in crude oil prices and natural gas prices will insinuate similar movements in Oasis Petroleum stock. Crude oil prices will have a more significant impact given the higher positive correlation.
Compared to the S&P 500 ETF (SPY), Oasis Petroleum has underperformed again. SPY represents the broader market. It has returned ~9% since the beginning of the year.