Southwestern Energy’s stock performance
As we saw in the previous part of this series, Southwestern Energy’s (SWN) stock price decreased ~8.0% in the last one-week period (March 26 to April 2). However, natural gas (BOIL) prices rose almost 1.0%. SWN’s stock price underperformed natural gas prices last week. In this part, we’ll discuss the correlation between SWN stock and natural gas prices.
Southwestern Energy’s stock price correlations
In the last one-week period, Southwestern Energy (SWN) stock had a strong correlation of ~76.0% with natural gas, and volatility in natural gas prices impacted SWN’s stock price during most days during the last week. This trend was evident on April 2, 2018, when SWN and natural gas both declined strongly.
In the last one-week period, Southwestern Energy’s correlation with crude oil was ~87.0%. This correlation means that movements in SWN’s stock price were in sync with changes in crude oil.
Southwestern Energy’s correlations over the last month
Southwestern Energy stock has shown correlations of ~-8.0% and ~8.0% with natural gas and crude oil prices, respectively, over the last one-month period. Typically, SWN’s stock price is more influenced by changes in natural gas prices than crude oil. However, the last one-month period was an exception, as SWN rose ~11.0% and natural gas fell ~1.0%.
SWN’s 2017 production mix contained ~89.0% natural gas. For more information on this sector, please read Which Natural Gas–Weighted Stocks to Watch.