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Sembcorp-WTI-Keppel-Sembmar shows positive correlation

I never fully appreciate investors’ enthusiasm for local oil and gas plays Keppel, Sembcorp and Sembmarine whenever WTI gains but after looking at these charts, I intend to keep an open mind.

 

Chart #1 – Sembcorp, Keppel Corp and Sembmarine overlay with WTI, monthly chart, 2005 – 2017

This appears to be strong positive correlation over a long period from a bird’s eye view.

Sembcorp, Keppel Corp and Sembmarine overlay with WTI from 2005 - 2017

Sembcorp, Keppel Corp and Sembmarine overlay with WTI from 2005 – 2017

 

Chart #2 – Sembcorp, Keppel Corp and Sembmarine overlay with WTI daily chart, year to date

Over a shorter duration, at daily time frame level, the ‘strong positive correlation’ that appeared in the higher chart looks less convincing. If there is correlation at all, then it appears that Sembcorp suddenly diverged or derailed in November.

Sembcorp, Keppel Corp and Sembmarine overlay with WTI, daily chart, year to date

Sembcorp, Keppel Corp and Sembmarine overlay with WTI, daily chart, year to date

Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’.

“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.

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