uploads///Correlation

Correlation between Weatherford and Crude Oil on August 4

By

Aug. 8 2017, Updated 8:09 a.m. ET

Correlation between Weatherford and crude oil

Weatherford International (WFT) stock and crude oil prices have had a steady positive correlation in the past year. The correlation coefficient between Weatherford International’s stock price and WTI (West Texas Intermediate) crude oil prices from August 4, 2016, to August 4, 2017, is 0.45.

Article continues below advertisement

What does Weatherford’s correlation with crude oil mean?

Investors might note that a steady correlation could turn out to be an advantage for Weatherford’s stock price if crude oil prices continue to follow the current uptrend in the future. Weatherford’s correlation with crude oil prices has fallen in the trailing year to August 2017—compared to August 2016. In comparison, the VanEck Vectors Oil Services ETF’s (OIH) correlation with crude oil is higher in the trailing year to August 4, 2017—compared to August 2016.

Correlation between Weatherford’s peers and crude oil

OIH’s correlation with crude oil since August 4, 2016, is 0.72—as noted in the above graph. Core Laboratories’ (CLB) correlation coefficient is 0.50 since August 4, 2016, while Patterson-UTI Energy’s (PTEN) correlation coefficient is 0.64 since August 4, 2016. During the same period, Oceaneering International’s (OII) correlation coefficient is 0.58.

Read The Oilfield Equipment and Services Industry: A Primer to learn about the OFS industry.

Advertisement

More From Market Realist

  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.