Correlation Between Aviat Networks and Camtek

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

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

Diversification Opportunities for Aviat Networks and Camtek

0.01

Correlation Coefficient

Aviat Networks  Camtek

Significant diversification

The 3 months correlation between Aviat and Camtek is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Aviat Networks and Camtek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camtek and Aviat Networks 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 Aviat Networks 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 Aviat Networks i.e., Aviat Networks and Camtek go up and down completely randomly.

Pair Corralation between Aviat Networks and Camtek

Given the investment horizon of 90 days Aviat Networks is expected to under-perform the Camtek. But the stock apears to be less risky and, when comparing its historical volatility, Aviat Networks is 1.19 times less risky than Camtek. The stock trades about -0.01 of its potential returns per unit of risk. The Camtek is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  9,193  in Camtek on July 17, 2025 and sell it today you would earn a total of  2,910  from holding Camtek or generate 31.65% return on investment over 90 days.

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

Aviat Networks  vs.  Camtek

Aviat Networks

Risk-Adjusted Performance

Weakest

Over the last 90 days Aviat Networks has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Aviat Networks is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Camtek

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Camtek are ranked lower than 10 (%) 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.

Pair Trading with Aviat Networks and Camtek

The main advantage of trading using opposite Aviat Networks and Camtek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aviat Networks 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.

The idea behind Aviat Networks and Camtek 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.