Correlation Between InTest and Camtek
Can any of the company-specific risk be diversified away by investing in both InTest 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 InTest and Camtek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between inTest and Camtek, you can compare the effects of market volatilities on InTest 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 InTest with a short position of Camtek. Check out your portfolio center. Please also check ongoing floating volatility patterns of InTest and Camtek.
Diversification Opportunities for InTest and Camtek
Good diversification
The 3 months correlation between InTest and Camtek is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding inTest and Camtek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camtek and InTest 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 inTest 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 InTest i.e., InTest and Camtek go up and down completely randomly.
Pair Corralation between InTest and Camtek
Given the investment horizon of 90 days inTest is expected to under-perform the Camtek. But the stock apears to be less risky and, when comparing its historical volatility, inTest is 1.0 times less risky than Camtek. The stock trades about -0.03 of its potential returns per unit of risk. The Camtek is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 5,442 in Camtek on September 1, 2024 and sell it today you would earn a total of 2,008 from holding Camtek or generate 36.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
inTest vs. Camtek
Performance |
| Timeline |
| inTest |
| Camtek |
InTest and Camtek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InTest and Camtek
The main advantage of trading using opposite InTest and Camtek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InTest 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.| InTest vs. Axcelis Technologies | InTest vs. Lam Research Corp | InTest vs. Photronics | InTest vs. indie Semiconductor |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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