Correlation Between Camtek and Delek
Can any of the company-specific risk be diversified away by investing in both Camtek and Delek 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 Camtek and Delek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camtek and Delek Group, you can compare the effects of market volatilities on Camtek and Delek 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 Camtek with a short position of Delek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camtek and Delek.
Diversification Opportunities for Camtek and Delek
Modest diversification
The 3 months correlation between Camtek and Delek is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Camtek and Delek Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Group and Camtek 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 Camtek are associated (or correlated) with Delek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delek Group has no effect on the direction of Camtek i.e., Camtek and Delek go up and down completely randomly.
Pair Corralation between Camtek and Delek
Assuming the 90 days trading horizon Camtek is expected to generate 1.0 times less return on investment than Delek. In addition to that, Camtek is 1.39 times more volatile than Delek Group. It trades about 0.32 of its total potential returns per unit of risk. Delek Group is currently generating about 0.44 per unit of volatility. If you would invest 4,651,000 in Delek Group on October 21, 2024 and sell it today you would earn a total of 834,000 from holding Delek Group or generate 17.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Camtek vs. Delek Group
Performance |
| Timeline |
| Camtek |
| Delek Group |
Camtek and Delek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camtek and Delek
The main advantage of trading using opposite Camtek and Delek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camtek position performs unexpectedly, Delek 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 Delek will offset losses from the drop in Delek's long position.The idea behind Camtek and Delek Group 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.| Delek vs. Fattal 1998 Holdings | Delek vs. El Al Israel | Delek vs. Bank Leumi Le Israel | Delek vs. Teva Pharmaceutical Industries |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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