Natural gas–weighted stocks
Most of the natural gas–weighted stocks on our list had negative correlations with US crude oil prices in the seven calendar days to October 24.
The natural gas–weighted stocks under review that might be inversely related to US crude oil December futures’ movements based on their correlations with US crude oil December futures in the last five trading sessions are:
Only Antero Resources (AR) had a positive correlation of 25% with US crude oil prices in the trailing week.
The natural gas–weighted stocks mentioned above are part of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). They operate with production mixes of at least 60.0% in natural gas.
Next, we’ll analyze natural gas–weighted stocks’ returns and see how their correlations with crude oil, natural gas, and the broader market might have driven their returns.