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How Weatherford Reacted to Crude Oil Price Changes

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Correlation between Weatherford and crude oil

From December 29, 2017, to January 5, 2018, Weatherford International’s (WFT) correlation with the West Texas Intermediate crude oil price was -0.13. Weatherford’s correlation with the Dow Jones Industrial Average (DJIA-INDEX) from December 29, 2017, to January 5, 2018, was also negative.

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What does Weatherford’s correlation with crude oil imply?

Weatherford’s negative correlation coefficient with crude oil doesn’t benefit Weatherford’s stock price if crude oil’s current momentum continues. Weatherford’s correlation with crude oil prices during the week ending January 5, 2018, was negative. However, it was an improvement compared to the correlation in the week ending January 5, 2017.

The VanEck Vectors Oil Services ETF’s (OIH) correlation with crude oil was positive during the week ending January 5, 2018. It was substantially lower than the correlation in the week ending January 5, 2017.

Correlation between Weatherford’s peers and crude oil

Core Laboratories’ (CLB) correlation coefficient since December 29, 2017, was 0.35. Patterson-UTI Energy’s (PTEN) correlation coefficient since December 29, 2017, was 0.47. During the same period, Oceaneering International’s (OII) correlation coefficient was 0.06.

To learn more about the OFS industry, read The Oilfield Equipment and Services Industry: A Primer and Top 5 OFS Companies Based on 2017 Returns.

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