Correlation between Schlumberger and crude oil
Schlumberger’s (SLB) correlation with the price of crude oil from February 16, 2018, to February 23, 2018, was 0.84. Its correlation with the Dow Jones Industrial Average (DJIA-INDEX) in the same period was 0.95.
SLB’s correlation with crude oil and its implication
The price of WTI (West Texas Intermediate) crude oil has risen significantly since the end of June 2017. A strong positive correlation can positively affect SLB’s stock price if crude oil rises from its current level. Schlumberger’s correlation with the price of crude oil fell in the week ended February 23, 2018, compared to the same week in the previous year.
Correlation between oilfield services companies and crude oil
The correlation coefficient of the VanEck Vectors Oil Services ETF (OIH) with crude oil since February 16, 2018, was 0.96. Weatherford International’s (WFT) correlation with crude oil since February 16, 2018, was 0.78, and Carbo Ceramics’ (CRR) correlation coefficient was 0.81. Tetra Technologies’ (TTI) correlation coefficient was -0.19.
For more information, be sure to read Market Realist’s How Schlumberger and Halliburton Stack Up after 4Q17 Results and Schlumberger and Halliburton: A Comparison after 4Q17.