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How TechnipFMC Reacted to Crude Oil Prices

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Correlation between crude oil and FTI’s stock

Has FTI’s correlation with crude oil price changed?

As we noted in the graph above, FTI’s correlation with crude oil prices was much lower a month ago, in the week from October 3 to October 9. It’s now ~11% higher. However, some factors could weigh on the upside potential for crude oil prices. Read more in Market Realist’s Why Doubts Linger about Sustainability of Crude Oil Bull Market. A high correlation may not bode well for FTI’s stock price. The VanEck Vectors Oil Services ETF’s (OIH) correlation with crude oil remained the same in the week from November 3 to November 9 compared to a month before from October 3 to October 9.

Correlation between peer stocks and crude oil

Helmerich & Payne’s (HP) correlation coefficient from November 3 to November 9 was 0.93 while McDermott International’s (MDR) correlation coefficient during the same period was 0.89. Oil States International’s (OIS) correlation coefficient from November 3 to November 9 was 0.96.

Next in this series, we’ll discuss Wall Street analysts’ recommendations for TechnipFMC.

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