Correlation between HAL stock and crude oil
How has HAL reacted to crude oil?
As noted in the graph above, HAL’s correlation with the crude oil price was lower in the trailing year to February 15, 2018, compared to the previous year to February 15, 2017. Crude oil prices are now ~14% higher compared to a year ago. However, the crude oil price has been volatile in the past few weeks. Read more on this in Market Realist’s A Recovery in Oil Could Boost Energy Stocks. So, a high correlation may not bode well for HAL’s stock price if the crude oil price falls.
Correlation between peers and crude oil
The VanEck Vectors Oil Services ETF’s (OIH) correlation with crude oil since February 15, 2017, was 0.64. OIH’s correlation with crude oil was lower in the trailing year to February 15, 2018, compared to the previous two years. Helmerich & Payne’s (HP) correlation coefficient since February 15, 2017, was 0.57, while McDermott International’s (MDR) correlation coefficient since February 15, 2017, was 0.41. Oil States International’s (OIS) correlation coefficient during the same period was 0.47.
Next, we’ll discuss Wall Street analysts’ recommendations for Halliburton.