CORRELATION BETWEEN OIL AND U.S. STOCK PRICES, WHAT COMPANIES ARE RESILIENT THE MOST IN ENERGY SECTOR
CORRELATION BETWEEN OIL AND U.S. STOCK PRICES, WHAT COMPANIES ARE RESILIENT THE MOST IN ENERGY SECTOR

Summary/Abstract: As OPEC could not recently find an agreement to contain the dramatic oil prices drop, the US, but also worldwide, stock markets have experienced a new decline, limited not only to energy sectors. In this paper we examine the statistical correlation of oil prices (Brent) and US energy sector stocks for the past five years (2011-2015). The analysis is carried out on public available data, such as FRED database (Federal Reserve Bank of St. Louis), with a weekly granularity. The output highlights which companies have the highest degree of resistance to oil price volatility. It puts then in comparison those resilient companies with their degree of integration along the energy operations. As falling oil prices may have impact in different manner on the sub-sectors, some companies may eventually benefit from their positioning along the value chain (downstream vs. upstream segments).

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