Correlation between Schlumberger and crude oil
Schlumberger’s (SLB) correlation with the price of crude oil from March 2, 2018, to March 9, 2018, was 0.86. Its correlation with the SPDR S&P 500 ETF (SPY) from March 2, 2018, to March 9, 2018, was 0.93.
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 the price of SLB stock if crude oil rises from its current level. Schlumberger’s correlation with the price of crude oil has increased in the week to March 9, 2018, compared to the comparable 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 March 2, 2018, was 0.93. Helmerich & Payne’s (HP) correlation with crude oil since March 2, 2018, was 0.80. McDermott International’s (MDR) correlation coefficient since March 2, 2018, was 0.97, while Oil States International’s (OIS) correlation coefficient since March 2, 2018, was 0.70.
Be sure to read Market Realist’s How Schlumberger and Halliburton Stack Up after 4Q17 Results. Also read Market Realist’s Which Oilfield Service Stocks Look Attractive after 2017?