Correlation Between Camtek and Alpha

Can any of the company-specific risk be diversified away by investing in both Camtek and Alpha 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 Camtek and Alpha into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Camtek and Alpha and Omega, you can compare the effects of market volatilities on Camtek and Alpha 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 Camtek with a short position of Alpha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camtek and Alpha.

Diversification Opportunities for Camtek and Alpha

0.9

Correlation Coefficient

Camtek  Alpha

Almost no diversification

The 3 months correlation between Camtek and Alpha is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Camtek and Alpha and Omega in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha and Omega and Camtek 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 Camtek are associated (or correlated) with Alpha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha and Omega has no effect on the direction of Camtek i.e., Camtek and Alpha go up and down completely randomly.

Pair Corralation between Camtek and Alpha

Given the investment horizon of 90 days Camtek is expected to generate 0.82 times more return on investment than Alpha. However, Camtek is 1.21 times less risky than Alpha. It trades about 0.21 of its potential returns per unit of risk. Alpha and Omega is currently generating about 0.15 per unit of risk. If you would invest  6,959  in Camtek on May 7, 2025 and sell it today you would earn a total of  2,718  from holding Camtek or generate 39.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Camtek  vs.  Alpha and Omega

Camtek

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Camtek are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating primary indicators, Camtek unveiled solid returns over the last few months and may actually be approaching a breakup point.

Alpha and Omega

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Alpha and Omega are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Alpha disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Camtek and Alpha

The main advantage of trading using opposite Camtek and Alpha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camtek position performs unexpectedly, Alpha 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 Alpha will offset losses from the drop in Alpha's long position.

The idea behind Camtek and Alpha and Omega pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.