Correlation between crude Oil and Halliburton
The correlation coefficient between the price of crude oil and Halliburton (HAL) stock from September 5, 2016, to September 5, 2017, is 0.65. That indicates a strong positive relationship between the price of crude oil and Halliburton stock.
Has HAL’s correlation with crude oil price changed?
As noted in the graph above, HAL’s correlation with crude oil was unchanged in the trailing year to September 5, 2017, compared to the previous year to September 5, 2016. Crude oil is now ~8.0% higher than a year ago. However, there are many factors weighing on the upside potential for crude oil. Read more on this in Market Realist’s Crude Oil and Natural Gas Diverge: The Impact on Energy Stocks. So a high correlation doesn’t bode well for HAL’s stock price. The Van Eck Vectors Oil Services ETF’s (OIH) correlation with crude oil is marginally higher in the trailing year to September 5, 2017, compared to the previous two years.
Correlation between peers and crude oil
OIH’s correlation with crude oil since September 5, 2016, is 0.71. Core Laboratories’ (CLB) correlation coefficient since September 2016 is 0.49, while Patterson-UTI Energy’s (PTEN) is 0.65. Oceaneering International’s (OII) correlation coefficient during the same period is 0.57.
Next, let’s see what Wall Street analysts are recommending for Halliburton.