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WestFire Energy Ltd T.WFE



TSX:WFE - Post by User

Comment by heraclituson Aug 22, 2012 4:16pm
230 Views
Post# 20248773

RE: Comparables vs. Correlation

RE: Comparables vs. Correlation

To claim there is no correlation between share price and oil price for an oil company is palpably horse doo doo.  Take oil prices to zero and SP will go down, Take oil prices to $150, SP will rise.  Sometimes the correlation is stronger than others and right now there is a lot of noise and uncertainty but no matter how you bleat there is still correlation.  Let me take it a step further - long term, oil price is the strongest influence (i.e. correlatiedness) on your average companies share price.

 

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