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What’s COP’s Correlation with Crude Oil?

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ConocoPhillips’s stock performance

As we have seen in the previous part of this series, ConocoPhillips’s (COP) stock price rose ~3% last week. However, crude oil (UWT) moved down by more than 1% in the same week. So, COP’s stock clearly outperformed crude oil prices. In this part, we’ll look at the correlation between COP’s stock and crude oil prices.

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ConocoPhillips’s stock price correlations

For the week ended March 29, ConocoPhillips stock showed a high correlation of ~62% with crude oil prices. In other words, movement in crude oil prices impacted COP’s stock price on most of the days last week. This correlation was especially visible on Wednesday and Thursday when crude oil and COP moved in the same directions.

ConocoPhillips’s 2017 production mix contained ~61% liquids (crude oil, bitumen, and natural gas liquids). Also, COP’s current operational strategy is geared towards lowering natural gas production in North America. For the week ended March 29, ConocoPhillips’s correlation with natural gas was at ~37%. This means movements in COP’s stock price were slightly in synch with natural gas prices.

ConocoPhillips’s correlations over the last one month

ConocoPhillips stock has shown correlations of ~89% and ~-31% with crude oil and natural gas prices, respectively, over the last one month. To read more about various energy stocks and their correlation with crude oil prices, read, Are Oil-Weighted Stocks a Good Bet during Oil’s Rise?

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