Natural gas–weighted stocks

Natural gas–weighted stocks that could follow oil’s moves based on their correlations with oil (USO) (USL) prices between November 20 and November 27, 2017, include:

  • WPX Energy (WPX): 59.5%
  • Chesapeake Energy (CHK): 31.5%
  • Cabot Oil & Gas (COG): 25.8%

CHK and WPX had negative correlations with natural gas prices over this period, as we discussed in the previous article. In the past five trading sessions, natural gas had a negative correlation of 88.5% with WTI crude oil prices.

Which Natural Gas–Weighted Stocks Could Take Cues from Oil?

On the other side of this relationship, natural gas–weighted stocks that could avoid signals from oil prices based on their trailing week correlations with US crude oil futures include:

  • Antero Resources (AR): -34.4%
  • Gulfport Energy (GPOR): -31.6%

These two stocks were among the natural gas–weighted stocks that had the highest correlations with natural gas prices in the trailing week.

Our list of natural gas–weighted stocks is from the SPDR S&P Oil & Gas Exploration & Production ETF (XOP), and they have at least 60.0% production mixes in natural gas.

How oil could influence natural gas–weighted stocks

Oil prices could be a key fundamental factor for natural gas supplies. Moreover, oil’s sentiment could impact the entire energy sector. As a result, oil frequently influences some natural gas-weighted stocks directly.

Latest articles

This year, Pfizer (PFE) stock has fallen 0.34% and Bristol-Myers Squibb (BMY) stock has fallen 6.48%. Both companies are focused on strengthening their position in the high-growth oncology and immunology markets. Let's take a closer look at each.

Walt Disney’s (DIS) latest movie, Toy Story 4, has reportedly broken records in the opening weekend with $118 million in sales. However, the opening weekend collection was behind analysts’ expectations of at least $150 million in the first weekend.

24 Jun

Will Home Depot’s Upward Momentum to Continue?

WRITTEN BY Rajiv Nanjapla

As of June 21, Home Depot (HD) was trading at $209.39, which implies a rise of 9.7% since the announcement of its first-quarter earnings on May 21. Also, the company was trading at a premium of 32.4% from its 52-week low of $158.09 and a discount of 2.8% from its 52-week high of $215.43.

On June 21, Aurora Cannabis (ACB) made an announcement that indicated that it will move towards higher margin vape products. In addition, the company also believes concentrates and edibles will command higher margins. In anticipation of this development, the company announced the expansion of its facility to capitalize on growth related to these segments.

Shares of Mondelēz International (MDLZ) are scaling new heights thanks to its stellar gains so far this year. Mondelēz stock is up 38.0% on a YTD (year-to-date) basis, and it closed at $55.25—just a shade lower than its 52-week high of $55.71—on June 21.

24 Jun

How Long Will Facebook's Libra Fuel Bitcoin Rally?

WRITTEN BY Mayur Sontakke, CFA, FRM

Ever since the news about Facebook’s (FB) cryptocurrency project broke, Bitcoin has rallied on the hope that Facebook’s entry in the space will help make cryptocurrencies mainstream. Facebook’s cryptocurrency will be called Libra and will be governed by an association with 28 founding members across industries.