Patterson-UTI Energy’s correlation with crude oil
The correlation coefficient between crude oil prices and Patterson-UTI Energy (PTEN) from November 14, 2016, to November 14, 2017, was 0.63. So, Patterson-UTI Energy stock and crude oil prices have been closely correlated in the past year.
What does the correlation with crude oil mean?
Analysts don’t expect much potential downside in crude oil prices in the short run. Read Which Energy Stocks Could Be in Danger if Oil Keeps Stalling? to learn more. A high correlation might be advantageous to any impending potential rise in Patterson-UTI Energy’s stock price. Its correlation with crude oil prices has decreased marginally in the trailing year to November 14, 2017—compared to the previous year to November 14, 2016.
Correlation between Patterson-UTI Energy’s peers and crude oil
As noted in the above graph, the VanEck Vectors Oil Services ETF’s (OIH) correlation with crude oil since November 14, 2016, was 0.69. Tesco’s (TESO) correlation coefficient since November 14, 2016, was 0.35, while McDermott International’s (MDR) correlation coefficient was 0.45. During the same period, Oceaneering International’s (OII) correlation coefficient was 0.46. Patterson-UTU Energy’s correlation coefficient with the Dow Jones Industrial Average (DJIA-INDEX) since November 14, 2016, was 0.21.
In the next part, we’ll discuss Wall Street analysts’ target price for Patterson-UTI Energy.