Correlation, Rating & Strength
Oil is by far the most important and volatile commodity currently being traded. The impacts of oil price on a country's economy are wide and far reaching. A sudden change in the price of oil can have significant ripple effects on other asset classes, such as stocks.
Houghton Street Partners uses an internally developed proprietary model to determine the intrinsic value of crude oil as well as the possible impacts that price changes can have on the macroeconomic outlook of a market.
Our model on the intrinsic value of oil helps us develop pricing strategies when we invest in businesses to mitigate the risks of fluctuations in oil price.