Correlation Between Camtek and AudioCodes
Can any of the company-specific risk be diversified away by investing in both Camtek and AudioCodes 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 AudioCodes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camtek and AudioCodes, you can compare the effects of market volatilities on Camtek and AudioCodes 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 AudioCodes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camtek and AudioCodes.
Diversification Opportunities for Camtek and AudioCodes
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Camtek and AudioCodes is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Camtek and AudioCodes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AudioCodes 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 AudioCodes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AudioCodes has no effect on the direction of Camtek i.e., Camtek and AudioCodes go up and down completely randomly.
Pair Corralation between Camtek and AudioCodes
Given the investment horizon of 90 days Camtek is expected to generate 0.78 times more return on investment than AudioCodes. However, Camtek is 1.29 times less risky than AudioCodes. It trades about 0.23 of its potential returns per unit of risk. AudioCodes is currently generating about 0.07 per unit of risk. If you would invest 6,397 in Camtek on April 23, 2025 and sell it today you would earn a total of 2,836 from holding Camtek or generate 44.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Camtek vs. AudioCodes
Performance |
Timeline |
Camtek |
AudioCodes |
Camtek and AudioCodes Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Camtek and AudioCodes
The main advantage of trading using opposite Camtek and AudioCodes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camtek position performs unexpectedly, AudioCodes 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 AudioCodes will offset losses from the drop in AudioCodes' long position.Camtek vs. Onto Innovation | Camtek vs. Amtech Systems | Camtek vs. Veeco Instruments | Camtek vs. Ichor Holdings |
AudioCodes vs. ADTRAN Inc | AudioCodes vs. Allot Communications | AudioCodes vs. Aviat Networks | AudioCodes vs. Camtek |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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