Correlation between Oceaneering International and crude oil
Oceaneering International’s (OII) correlation with crude oil’s price from March 21 to June 21 was 0.65, representing a positive relationship between OII and crude oil.
OII’s correlation with crude oil and its implications
WTI crude oil’s price has risen significantly since the end of June 2017. A positive correlation could benefit OII’s price if crude oil rises. Oceaneering International’s correlation with crude oil’s price has increased in the past three months compared to the year leading up to June 21.
Correlation between oilfield services companies and crude oil
Halliburton’s (HAL) correlation with crude oil since March 21 is 0.68, higher than its correlation with crude oil in the past year. Flotek Industries’ (FTK) correlation with oil since March 21 is 0.15, lower than their correlation from June 21, 2017, to June 13, 2018. Tidewater’s (TDW) correlation with crude oil from March 21 to June 21 was 0.26, higher than its correlation with crude oil in the past year.
What do the numbers mean?
A high correlation with oil could mean that a stock has been more affected by crude oil’s price movements. A negative correlation implies that a stock’s price has moved inversely to crude oil’s price. A lower or falling correlation means a lesser or decreasing influence of crude oil’s price on the movements of a stock, and vice versa.