Correlation Between ATT and Camtek
Can any of the company-specific risk be diversified away by investing in both ATT 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 ATT and Camtek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and Camtek, you can compare the effects of market volatilities on ATT 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 ATT with a short position of Camtek. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Camtek.
Diversification Opportunities for ATT and Camtek
Pay attention - limited upside
The 3 months correlation between ATT and Camtek is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Camtek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camtek and ATT 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 ATT Inc 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 ATT i.e., ATT and Camtek go up and down completely randomly.
Pair Corralation between ATT and Camtek
Taking into account the 90-day investment horizon ATT Inc is expected to generate 0.32 times more return on investment than Camtek. However, ATT Inc is 3.11 times less risky than Camtek. It trades about 0.13 of its potential returns per unit of risk. Camtek is currently generating about 0.01 per unit of risk. If you would invest 1,693 in ATT Inc on August 28, 2024 and sell it today you would earn a total of 617.00 from holding ATT Inc or generate 36.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATT Inc vs. Camtek
Performance |
| Timeline |
| ATT Inc |
| Camtek |
ATT and Camtek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and Camtek
The main advantage of trading using opposite ATT and Camtek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT 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.| ATT vs. Liberty Broadband Srs | ATT vs. Ribbon Communications | ATT vs. Liberty Broadband Srs | ATT vs. Shenandoah Telecommunications Co |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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