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How’s Halliburton Reacting to Crude Oil’s Price Change?

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Correlation between Halliburton and crude oil

Halliburton’s (HAL) stock price correlation coefficient with crude oil’s price on March 16–23, 2018, was 0.85. Halliburton and crude oil’s price had a strong correlation in the past week. A high correlation means that the stock was impacted more by crude oil’s movement.

Halliburton’s correlation with the VanEck Vectors Oil Services ETF (OIH), an ETF comprised of 25 oilfield equipment and services stocks, was 0.92 on March 16–23, 2018.

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What does Halliburton’s correlation with crude oil mean?

A relatively strong correlation might not be an advantage for Halliburton’s stock price if crude oil’s price goes down from here. Halliburton’s correlation with crude oil’s price increased in the week to March 23, 2018—compared to Halliburton’s correlation with crude oil (0.49) in the past three months since December 23, 2017.

Correlation between Halliburton’s peers and crude oil

The VanEck Vectors Oil Services ETF’s (OIH) correlation coefficient with crude oil since March 16, 2018, was 0.81. The correlation was higher compared to OIH’s correlation with crude oil (0.59) in the past three months. Helmerich & Payne’s (HP) correlation with crude oil since March 16, 2018, was 0.78. Helmerich & Payne’s correlation with crude oil in the past week increased compared to its correlation in the past three months.

McDermott International’s (MDR) correlation coefficient since March 16, 2018, was 0.74. The correlation increased sharply compared to McDermott International’s correlation with crude oil in the past three months. Since March 16, 2018, Oil States International’s (OIS) correlation coefficient was 0.88. The correlation was higher compared to Oil States International’s correlation with crude oil since December 23, 2017.

To learn more, read How Baker Hughes and National Oilwell Varco Stack Up after 4Q17 and Top 5 Oilfield Companies Based on 2018 Returns.

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