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How TechnipFMC Is Reacting to Crude Oil’s Moves

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Correlation between TechnipFMC and crude oil

TechnipFMC’s (FTI) stock price correlation with crude oil from April 10, 2017, to July 10, 2018, was 0.11, which indicates a relatively weak positive relationship between TechnipFMC’s stock and crude oil prices. A low correlation indicates the stock’s price loosely tracked crude oil prices. FTI’s correlation with crude oil prices was lower in the trailing three months to July 10, 2018, compared to the past year. The WTI crude oil price increased 11% in the past three months until July 10.

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The VanEck Vectors Oil Services ETF’s (OIH) correlation with crude oil since April 10, 2018, was 0.62. OIH is an ETF that tracks an index of 25 oilfield equipment and services (or OFS) companies. OIH’s correlation with crude oil was marginally lower in the trailing three months to July 10, 2018, versus the correlation since July 10, 2017.

Correlation between FTI’s peers and crude oil

Flotek Industries’ (FTK) correlation with crude oil since April 10 was 0.11, which was lower compared to FTK’s correlation with crude oil since July 10, 2017. Tidewater’s (TDW) correlation since April 10 was 0.33, which was higher compared to TDW’s correlation with crude oil in the past year. Precision Drilling’s (PDS) correlation in the past three months was 0.57, which was higher compared to PDS’s correlation with crude oil since June 10, 2017.

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