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Is National Oilwell Varco Following Crude Oil?

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NOV’s correlation with crude oil prices

National Oilwell Varco’s (NOV) correlation with crude oil prices from December 12, 2016, to December 12, 2017, was 0.51, which indicates a relatively strong positive relationship between crude oil price and National Oilwell Varco’s stock. NOV’s correlation with the crude oil price was marginally higher in the trailing year to December 12, 2017, compared to the previous year to December 12, 2016. NOV’s correlation with the Dow Jones Industrial Average (DJIA-INDEX) since December 12, 2016, was 0.33.

Correlation between NOV’s peers and crude oil

As noted in the graph above, the VanEck Vectors Oil Services ETF’s (OIH) correlation with crude oil since December 12, 2016, is 0.64. CARBO Ceramics’ (CRR) correlation coefficient since December 12, 2016, is 0.43, while Flotek Industries’ (FTK) correlation coefficient since December 12, 2016, is 0.32. Halliburton’s (HAL) correlation coefficient with crude oil prices during the same period is 0.55.

Next, we will discuss Wall Street analysts’ recommendations for National Oilwell Varco.

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