Correlation between Patterson-UTI Energy and crude oil
The correlation coefficient between Patterson-UTI Energy’s (PTEN) stock price and crude oil prices from October 6, 2016, to October 6, 2017, was 0.64, which indicates a strong positive relationship between Patterson-UTI Energy’s stock and crude oil changes.
PTEN’s correlation with crude oil prices
As the graph above shows, PTEN’s correlation with crude oil prices was marginally higher in the trailing year up to October 6, 2017, compared to the previous year up to October 6, 2016. Crude oil prices are now nearly at the same level they were at a year ago. A high correlation may turn out to be a positive driver for PTEN’s stock price if the crude oil prices show strength over the near future. OIH’s correlation with crude oil was also lower in the trailing year to October 6, 2017, versus the previous year.
Correlation between PTEN’s peers and crude oil prices
Oil States International’s (OIS) correlation coefficient since October 6, 2016, was 0.50 while National Oilwell Varco’s (NOV) correlation coefficient since October 2016 was 0.54. CARBO Ceramics’ (CRR) correlation coefficient was 0.42.
Contrary to Patterson-UTI Energy, the correlation coefficient between OIS and CRR and crude oil prices has decreased in the trailing year to October 6, 2017, compared to the year before that.
Next, we’ll discuss Wall Street analysts’ recommendations for PTEN.