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Do XOM, CVX, Shell, and BP Have Strong Correlations with Oil?

Michelle Rey
Do XOM, CVX, Shell, and BP Have Strong Correlations with Oil?

In the previous article, we evaluated ExxonMobil’s (XOM), Chevron’s (CVX), Royal Dutch Shell’s (RDS.A), and BP’s (BP) stock performances. Let’s see what patterns the above-mentioned stocks’ correlation coefficients show. Shell’s correlation with WTI stood at 0.53 in the trailing 12 months, showing that Shell’s stock price moved in line with WTI’s price to a certain extent—changes in oil’s price could explain ~53% of the changes in Shell’s stock price over the past 12 months.