Correlation Between Camtek and Semtech

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

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

Diversification Opportunities for Camtek and Semtech

0.93

Correlation Coefficient

Camtek  Semtech

Almost no diversification

The 3 months correlation between Camtek and Semtech is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Camtek and Semtech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semtech 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 Semtech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semtech has no effect on the direction of Camtek i.e., Camtek and Semtech go up and down completely randomly.

Pair Corralation between Camtek and Semtech

Given the investment horizon of 90 days Camtek is expected to generate 1.77 times less return on investment than Semtech. But when comparing it to its historical volatility, Camtek is 1.06 times less risky than Semtech. It trades about 0.12 of its potential returns per unit of risk. Semtech is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  3,507  in Semtech on May 9, 2025 and sell it today you would earn a total of  1,590  from holding Semtech or generate 45.34% 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.  Semtech

Camtek

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Camtek are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting primary indicators, Camtek unveiled solid returns over the last few months and may actually be approaching a breakup point.

Semtech

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Semtech are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Semtech exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Camtek and Semtech

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

The idea behind Camtek and Semtech 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.