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Correlation between Crude Oil and Nabors Industries September 1

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Correlation between crude oil and Nabors Industries

The correlation coefficient between the price of crude oil and Nabors Industries (NBR) stock from September 1, 2016, to September 1, 2017, was 0.65. That means Nabors Industries and crude oil prices have been closely correlated in the past year.

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What does NBR’s correlation with crude oil mean?

Since June 30, 2017, the price of WTI (West Texas Intermediate) crude oil has recovered ~3.0%. That came after the price of crude oil fell considerably for the previous four months. However, analysts don’t expect much upside potential for crude oil prices in the near term. A high correlation may be disadvantageous to a prospective rise in NBR’s stock price. Nabors Industries’ correlation with the price of crude oil has remained unchanged in the trailing year to September 1, 2017, compared to the previous year up to September 1, 2016.

Correlation between crude oil and NBR’s peers 

The VanEck Vectors Oil Services ETF’s (OIH) correlation with crude oil since September 1, 2016, is 0.71. OIH’s correlation with crude oil was unchanged in the trailing year to September 1, 2017, versus the previous year. Helmerich & Payne’s (HP) correlation coefficient since September 1, 2016, was 0.58. McDermott International’s (MDR) correlation coefficient since September 1, 2016, was 0.46, while Oil States International’s (OIS) correlation coefficient during the same period was 0.54.

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