W&T’s correlations last week
W&T Offshore (WTI) stock rose ~7% last week (ended September 29, 2017), while crude oil and the SPDR S&P 500 ETF (SPY) rose ~2% and ~0.7%, respectively, but natural gas prices closed one-half of a percentage point lower.
W&T Offshore stock showed a correlation of ~25% with crude oil (USO) (SCO) last week, which means that over the past five days, the daily movements in crude oil had a very small influence on the stock. Crude prices took a breather starting on Tuesday of last week, but WTI stock kept rising until Thursday.
But WTI stock’s correlation with natural gas (UNG) was stronger at ~45% last week. The stock’s correlation with SPDR S&P 500 ETF (SPY) came in at about -32%, meaning that the daily movements in the S&P 500 Index had no influence on WTI’s stock price last week.
Peer Murphy Oil (MUR) showed a correlation of ~73% with crude oil prices last week, rising ~2% due to the rise in crude prices. MUR showed a correlation of ~76% and -75%, respectively, with natural gas and SPY.
Murphy Oil’s production mix contains ~55% crude oil, and so crude oil prices have a high influence on MUR’s stock price.
For more on the correlations of upstream stocks with energy commodities, check out Market Realist’s series How Correlations with Energy Commodities Impact Upstream Stocks.
On September 15, 2017, W&T Offshore (WTI) total shares shorted (or short interest) stood at ~6.32 million, while its average daily volume is ~2.32 million.
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