Correlation matrix for oil assets

Water Cooler
#1

Anybody know of (have access to, can easily generate) a correlation matrix of several O&G assets?

Basically, what I’m trying to get at is this–we have a lot of clients out here in the oil patch that like to invest in oil and gas assets. Not only their royalties and working interests, but they also like to buy these stupid MLP’s that we talk about oh so often.

I want to convince them that if they just HAVE to have excess exposure to the industry, then they should just invest in USO or some other fund (that doesn’t generate a K-1). I can’t imagine that its total return is significantly different than the energy industry as a whole, but I don’t really know.

So what is the correlation between several representative O&G assets? I’d like to get information re: USO, the Alerian MLP K1, some of the big MLP’s, like Legacy Reserves (local company) and Enterprise Products Partners, some of the big upstream C-Corps, like Chesapeake and Pioneer Natural Resources (another local favorite), and the “average investor’s return on Working interest or royalty interest”. (I’m sure you guys have access to some database with this information.)

Any help would be greatly appreciated.

#2

Just say no to USO. Contango is not your friend, though it has flattened considerably, not to mention frictional losses.

#3

Value of black lifted Dodge Rams: Beta of 3.7 to WTI.

#4

yeah I didn’t do my research and bought into uso 3-4 months ago, I think, when wti was $35, down like 15% (when oil is at 40.xx today) since I bought it. There’s another one that works during contango while uso works during backwardation.

USO has a k1 btw

#5

1 year data from top left to bottom right USO vs WTI (CL), USO vx CHK, USO vsEPD, USO vs PXO

#6

Do you have bloomberg?

I can show you the function that will run it for you…but i think i can get in trouble with bloomberg if i run it on my end and post screencaps