Correlation Between Camtek and InTest
Can any of the company-specific risk be diversified away by investing in both Camtek and InTest 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 InTest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camtek and inTest, you can compare the effects of market volatilities on Camtek and InTest 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 InTest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camtek and InTest.
Diversification Opportunities for Camtek and InTest
Poor diversification
The 3 months correlation between Camtek and InTest is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Camtek and inTest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on inTest 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 InTest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of inTest has no effect on the direction of Camtek i.e., Camtek and InTest go up and down completely randomly.
Pair Corralation between Camtek and InTest
Given the investment horizon of 90 days Camtek is expected to generate 0.98 times more return on investment than InTest. However, Camtek is 1.02 times less risky than InTest. It trades about 0.09 of its potential returns per unit of risk. inTest is currently generating about -0.03 per unit of risk. If you would invest 2,569 in Camtek on November 27, 2024 and sell it today you would earn a total of 5,271 from holding Camtek or generate 205.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Camtek vs. inTest
Performance |
| Timeline |
| Camtek |
| inTest |
Camtek and InTest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camtek and InTest
The main advantage of trading using opposite Camtek and InTest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camtek position performs unexpectedly, InTest 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 InTest will offset losses from the drop in InTest's long position.| Camtek vs. Onto Innovation | Camtek vs. Amtech Systems | Camtek vs. Veeco Instruments | Camtek vs. Ichor Holdings |
| InTest vs. Axcelis Technologies | InTest vs. Lam Research Corp | InTest vs. Photronics | InTest vs. indie Semiconductor |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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