The natural gas-weighted stocks were reportedly featured with the highest correlations with oil (USO) (USL) prices in the week’s calendar days to October 30, 2017, and included WPX Energy (WPX) with 96.2% among others.
The others included Gulfport Energy (GOPR) at 98.9%, Cabot Oil & Gas (COG) at 82.1%, Rice Energy (RICE) at 51.3%, and Southwestern Energy (SWN) at 48.2%.
In the past five trading sessions, on the list of natural gas-weighted stocks, COG and WPX were among the top three gainers. Meanwhile, RICE and SWN were reportedly among the natural gas-weighted stocks with the most negative correlations to natural gas prices.
In the trailing week, RICE’s losses were below 1% and SWN rose more than 4%. And, while US crude oil futures rose 4.3%, the natural gas futures fell 6%. The aspect of sentiments related to oil is said to be behind the price performance of these natural gas-weighted stocks.
In the trailing week, the natural gas-weighted stocks with the least correlation are as follows: RRC and AR had negative correlations with natural gas prices. They were reportedly among the top losers on the last of natural gas-weighted stocks. Also, the two stocks had ignored fluctuations in oil and natural gas prices.
In the context of oil’s role, all these natural gas-weighted stocks illustrated higher correlations with oil prices compared to natural gas. It is observed that often oil prices guide natural gas prices and the entire energy sector. In the short time-frame, it is believed that could be the reason behind the strong bond between most of the natural gas-weighted stocks and oil prices.