Correlation Between Generation Capital and Camtek
Can any of the company-specific risk be diversified away by investing in both Generation Capital and Camtek 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 Generation Capital and Camtek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Generation Capital and Camtek, you can compare the effects of market volatilities on Generation Capital and Camtek 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 Generation Capital with a short position of Camtek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Generation Capital and Camtek.
Diversification Opportunities for Generation Capital and Camtek
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Generation and Camtek is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Generation Capital and Camtek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camtek and Generation Capital 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 Generation Capital are associated (or correlated) with Camtek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camtek has no effect on the direction of Generation Capital i.e., Generation Capital and Camtek go up and down completely randomly.
Pair Corralation between Generation Capital and Camtek
Assuming the 90 days trading horizon Generation Capital is expected to generate 0.59 times more return on investment than Camtek. However, Generation Capital is 1.7 times less risky than Camtek. It trades about 0.16 of its potential returns per unit of risk. Camtek is currently generating about -0.1 per unit of risk. If you would invest 5,500 in Generation Capital on August 28, 2024 and sell it today you would earn a total of 2,050 from holding Generation Capital or generate 37.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Generation Capital vs. Camtek
Performance |
| Timeline |
| Generation Capital |
| Camtek |
Generation Capital and Camtek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Generation Capital and Camtek
The main advantage of trading using opposite Generation Capital and Camtek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Generation Capital position performs unexpectedly, Camtek 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 Camtek will offset losses from the drop in Camtek's long position.| Generation Capital vs. Meitav Dash Investments | Generation Capital vs. IBI Inv House | Generation Capital vs. Mivtach Shamir | Generation Capital vs. Emilia Devel |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |