Price performance and correlations
From November 20 to November 27, 2017, natural gas–weighted stocks fell 1.3% on average, compared to the 3.9% decline in natural gas prices during this timeframe. The natural gas–weighted stocks that outperformed in the trailing week are:
WPX and COG were among the natural gas–weighted stocks that had relatively high positive correlations with oil prices, which we discussed previously in this series. In the seven calendar days ended November 27, 2017, US crude oil active futures rose 3.0%.
The natural gas–weighted stocks that underperformed in the past five trading sessions are:
In the seven calendar days ended November 27, 2017, GPOR had a positive correlation with natural gas prices and a negative correlation with oil prices. These stocks are part of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). The selection also depends on at least a 60.0% production mix in natural gas.
Apart from natural gas and oil prices, these natural gas–weighted stocks also depend on the broader equity market sentiments.
Natural gas active futures
Between March 3, 2016, and November 27, 2017, natural gas active futures rose 78.6%. On March 3, 2016, natural gas hit its 17-year lowest closing price.
ETFs that follow natural gas prices include the ProShares Ultra Bloomberg Natural Gas ETF (BOIL), which fell 18.4%. The United States Natural Gas ETF (UNG) rose 4.1%. Natural gas–weighted stocks from XOP collectively gained 2.2% during this timeframe.
The natural gas–weighted stocks that were the top gainers during this period are:
The natural gas–weighted stocks that underperformed between March 3, 2016, and November 27, 2017, are:
- Antero Resources (AR): -22.1%
- Range Resources: -42.3%
- Gulfport Energy: -51.6%
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