Correlation Between CONOIL PLC and MAY BAKER

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Can any of the company-specific risk be diversified away by investing in both CONOIL PLC and MAY BAKER at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CONOIL PLC and MAY BAKER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CONOIL PLC and MAY BAKER NIGERIA, you can compare the effects of market volatilities on CONOIL PLC and MAY BAKER and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in CONOIL PLC with a short position of MAY BAKER. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONOIL PLC and MAY BAKER.

Diversification Opportunities for CONOIL PLC and MAY BAKER

-0.78
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between CONOIL and MAY is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding CONOIL PLC and MAY BAKER NIGERIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAY BAKER NIGERIA and CONOIL PLC is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on CONOIL PLC are associated (or correlated) with MAY BAKER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAY BAKER NIGERIA has no effect on the direction of CONOIL PLC i.e., CONOIL PLC and MAY BAKER go up and down completely randomly.

Pair Corralation between CONOIL PLC and MAY BAKER

Assuming the 90 days trading horizon CONOIL PLC is expected to under-perform the MAY BAKER. But the stock apears to be less risky and, when comparing its historical volatility, CONOIL PLC is 2.53 times less risky than MAY BAKER. The stock trades about -0.21 of its potential returns per unit of risk. The MAY BAKER NIGERIA is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  1,400  in MAY BAKER NIGERIA on June 11, 2025 and sell it today you would earn a total of  405.00  from holding MAY BAKER NIGERIA or generate 28.93% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

CONOIL PLC  vs.  MAY BAKER NIGERIA

 Performance 
       Timeline  
CONOIL PLC 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days CONOIL PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain somewhat strong which may send shares a bit higher in October 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
MAY BAKER NIGERIA 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in MAY BAKER NIGERIA are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent technical and fundamental indicators, MAY BAKER exhibited solid returns over the last few months and may actually be approaching a breakup point.

CONOIL PLC and MAY BAKER Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with CONOIL PLC and MAY BAKER

The main advantage of trading using opposite CONOIL PLC and MAY BAKER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONOIL PLC position performs unexpectedly, MAY BAKER can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in MAY BAKER will offset losses from the drop in MAY BAKER's long position.
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The idea behind CONOIL PLC and MAY BAKER NIGERIA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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Check out your portfolio center.
Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

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