Correlation Between Isramco Negev and Camtek
Can any of the company-specific risk be diversified away by investing in both Isramco Negev 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 Isramco Negev and Camtek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Isramco Negev 2 and Camtek, you can compare the effects of market volatilities on Isramco Negev 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 Isramco Negev with a short position of Camtek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Isramco Negev and Camtek.
Diversification Opportunities for Isramco Negev and Camtek
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Isramco and Camtek is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Isramco Negev 2 and Camtek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camtek and Isramco Negev 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 Isramco Negev 2 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 Isramco Negev i.e., Isramco Negev and Camtek go up and down completely randomly.
Pair Corralation between Isramco Negev and Camtek
Assuming the 90 days trading horizon Isramco Negev is expected to generate 2.54 times less return on investment than Camtek. But when comparing it to its historical volatility, Isramco Negev 2 is 1.73 times less risky than Camtek. It trades about 0.08 of its potential returns per unit of risk. Camtek is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 834,106 in Camtek on August 28, 2024 and sell it today you would earn a total of 1,797,894 from holding Camtek or generate 215.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Isramco Negev 2 vs. Camtek
Performance |
| Timeline |
| Isramco Negev 2 |
| Camtek |
Isramco Negev and Camtek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Isramco Negev and Camtek
The main advantage of trading using opposite Isramco Negev and Camtek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Isramco Negev 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.| Isramco Negev vs. Nice | Isramco Negev vs. The Gold Bond | Isramco Negev vs. Bank Leumi Le Israel | Isramco Negev vs. ICL Israel Chemicals |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |