Correlation between Halliburton and crude oil
Crude oil’s price correlation coefficient with Halliburton’s (HAL) stock price on October 6–13, 2017, was 0.33. It shows that Halliburton and crude oil prices have been weakly correlated in the past week. Halliburton’s correlation with the Dow Jones Industrial Average (DJIA-INDEX) on October 6–13 was 0.59.
What does Halliburton’s correlation with crude oil mean?
Analysts don’t expect any significant impending downside in crude oil prices in the near term. So, a relatively low correlation might not be advantageous for Halliburton’s stock price. Halliburton’s correlation with crude oil prices increased in the trailing year to October 13, 2017—compared to the previous year to October 13, 2016.
Correlation between Halliburton’s peers and crude oil
The VanEck Vectors Oil Services ETF’s (OIH) correlation with crude oil since October 6, 2017, was 0.45. OIH’s correlation with crude oil has fallen in the trailing year to October 13, 2017—compared to the previous year. Core Laboratories’ (CLB) correlation coefficient since October 6, 2017, was 0.43. Patterson-UTI Energy’s (PTEN) correlation coefficient since October 6, 2017, was 0.59. During the same period, Oceaneering International’s (OII) correlation coefficient was 0.54.
A high correlation means that the stock was impacted strongly by the movements in crude oil. A negative correlation means that the stock was impacted strongly by the movements in crude oil in the opposite direction.
Learn about the OFS industry, read The Oilfield Equipment and Services Industry: A Primer. You can read about Wall Street analysts’ expectations for OFS companies in The Top and Bottom of Oilfield Service Stocks in 3Q17.