How Halliburton Is Reacting to Changes in Crude Oil Prices

Correlation between HAL stock and crude oil

The correlation coefficient between the price of crude oil and Halliburton (HAL) stock from June 7, 2017, to June 7, 2018, was 0.55. That shows a strong positive relationship between Halliburton stock and crude oil.

How Halliburton Is Reacting to Changes in Crude Oil Prices

How has HAL reacted to crude oil?

As you can see in the above graph, HAL’s correlation with the price of crude oil was lower in the trailing year to June 8, 2018, compared to the previous year to June 7, 2017. Crude oil is now ~45% higher than a year ago. So HAL’s strong correlation with crude oil should bode well for HAL stock if the price of crude oil rises.

Peers and their correlations to crude oil

Precision Drilling’s (PDS) correlation coefficient since June 7, 2017, was 0.57. That was lower than its correlation with crude oil in the previous year. Core Laboratories’ (CLB) correlation coefficient in the same period was 0.47, which was lower than its correlation with crude oil in the previous year.

Patterson-UTI Energy’s (PTEN) correlation coefficient from June 7, 2017, to June 7, 2018, was 0.58. That was lower than its correlation with crude oil in the previous year.

The VanEck Vectors Oil Services ETF’s (OIH) correlation with crude oil since June 7, 2017, was 0.65. Its correlation with crude oil was lower in the trailing year to June 7, 2018, compared to the previous year.

Next, we’ll look at Wall Street analysts’ recommendations for Halliburton.