Price performance and correlations
From November 20 to November 27, 2017, oil-weighted stocks rose just 0.5% on average, while US crude oil prices rose 3.0%. Collectively, these oil-weighted stocks missed oil’s rise. The oil-weighted stocks that rose the most in the trailing week are:
CPE and DNR were among the oil-weighted stocks that had the highest correlations with oil prices, which we discussed in the previous part.
The oil-weighted stocks that underperformed in the past five trading sessions are:
In the seven calendar days ended November 27, 2017, CRZO had the lowest correlation with oil prices among our list of oil-weighted stocks. These stocks are from the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). This selection also depends on these companies having at least 60% production in oil.
Apart from oil prices, these oil-weighted stocks also depend on the broader equity market sentiment.
Futures since 2016
Between February 11, 2016, and November 27, 2017, US crude oil active futures rose 121.4%. On February 11, 2016, US crude oil prices were at their 12-year low.
Among the ETFs that follow US crude oil, the ProShares Ultra Bloomberg Crude Oil ETF (UCO), the United States Oil ETF (USO), and the United States 12-Month Oil ETF (USL) rose 68.2%, 45.1%, and 40.9%, respectively. Collectively, the oil-weighted stocks from XOP gained 67.2% from February 11, 2016, to November 27, 2017.
The oil-weighted stocks that were the top gainers during this period are:
- California Resources (CRC): 143.8%
- Continental Resources (CLR): 140.6%
- Oasis Petroleum (OAS): 120.0%
The oil-weighted stocks that underperformed between February 11, 2016, and November 27, 2017, are: