Correlation Between International Business and Camtek
Can any of the company-specific risk be diversified away by investing in both International Business 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 International Business and Camtek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Business Machines and Camtek, you can compare the effects of market volatilities on International Business 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 International Business with a short position of Camtek. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and Camtek.
Diversification Opportunities for International Business and Camtek
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and Camtek is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Camtek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camtek and International Business 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 International Business Machines 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 International Business i.e., International Business and Camtek go up and down completely randomly.
Pair Corralation between International Business and Camtek
Considering the 90-day investment horizon International Business Machines is expected to generate 0.36 times more return on investment than Camtek. However, International Business Machines is 2.75 times less risky than Camtek. It trades about 0.09 of its potential returns per unit of risk. Camtek is currently generating about 0.01 per unit of risk. If you would invest 17,725 in International Business Machines on August 28, 2024 and sell it today you would earn a total of 4,888 from holding International Business Machines or generate 27.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Business Machine vs. Camtek
Performance |
| Timeline |
| International Business |
| Camtek |
International Business and Camtek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and Camtek
The main advantage of trading using opposite International Business and Camtek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business 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.| International Business vs. Data Storage Corp | International Business vs. Usio Inc | International Business vs. ARB IOT Group | International Business vs. FiscalNote Holdings |
| Camtek vs. Onto Innovation | Camtek vs. Amtech Systems | Camtek vs. Veeco Instruments | Camtek vs. Ichor Holdings |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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