Correlation Between Camtek and Scientific Industries

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

By analyzing existing cross correlation between Camtek and Scientific Industries, you can compare the effects of market volatilities on Camtek and Scientific Industries 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 Scientific Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camtek and Scientific Industries.

Diversification Opportunities for Camtek and Scientific Industries

-0.59

Correlation Coefficient

Camtek  Scientific Industries

Excellent diversification

The 3 months correlation between Camtek and Scientific is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Camtek and Scientific Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scientific Industries 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 Scientific Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scientific Industries has no effect on the direction of Camtek i.e., Camtek and Scientific Industries go up and down completely randomly.

Pair Corralation between Camtek and Scientific Industries

Given the investment horizon of 90 days Camtek is expected to generate 1.09 times less return on investment than Scientific Industries. But when comparing it to its historical volatility, Camtek is 4.58 times less risky than Scientific Industries. It trades about 0.16 of its potential returns per unit of risk. Scientific Industries is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  80.00  in Scientific Industries on May 30, 2025 and sell it today you would lose (8.00) from holding Scientific Industries or give up 10.0% of portfolio value over 90 days.

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

Camtek  vs.  Scientific Industries

Camtek

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Camtek are ranked lower than 12 (%) 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.

Scientific Industries

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Scientific Industries are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Scientific Industries exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Camtek and Scientific Industries

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

The idea behind Camtek and Scientific Industries 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.