Southwestern Energy Has a Higher Correlation with Natural Gas

Southwestern Energy’s stock performance

As we discussed in the previous part, Southwestern Energy’s (SWN) stock price increased ~3% for the week ending March 16. However, natural gas (BOIL) prices moved down almost 2%. Southwestern Energy’s stock price outperformed natural gas prices last week. In this part, we’ll discuss the correlation between Southwestern Energy stock and natural gas prices.

Southwestern Energy Has a Higher Correlation with Natural Gas

Stock price correlations

For the week ending March 16, Southwestern Energy stock had a high correlation of ~79% with natural gas (UGAZ). Volatility in natural gas prices impacted Southwestern Energy’s stock price most of the days last week. The high correlation was also in line with Southwestern Energy’s production mix, which contained ~89% natural gas in 2017.

For the week ending March 16, Southwestern Energy’s correlation with crude oil was at ~1%. Movements in Southwestern Energy’s stock price were indifferent to price changes in crude oil.

Correlations in the past month

Southwestern Energy stock has shown correlations of ~70% and -29% with natural gas and crude oil prices, respectively, in the past month. Read Are Natural Gas Prices Breaking Down? to learn more.