Correlation Between Camtek and Perion Network

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

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

Diversification Opportunities for Camtek and Perion Network

-0.02

Correlation Coefficient

Camtek  Perion Network

Good diversification

The 3 months correlation between Camtek and Perion is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Camtek and Perion Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perion Network 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 Perion Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perion Network has no effect on the direction of Camtek i.e., Camtek and Perion Network go up and down completely randomly.

Pair Corralation between Camtek and Perion Network

Assuming the 90 days trading horizon Camtek is expected to generate 0.92 times more return on investment than Perion Network. However, Camtek is 1.09 times less risky than Perion Network. It trades about 0.24 of its potential returns per unit of risk. Perion Network is currently generating about 0.13 per unit of risk. If you would invest  2,373,000  in Camtek on April 23, 2025 and sell it today you would earn a total of  785,000  from holding Camtek or generate 33.08% return on investment over 90 days.

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

Camtek  vs.  Perion Network

Camtek

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Camtek are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Camtek sustained solid returns over the last few months and may actually be approaching a breakup point.

Perion Network

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Perion Network are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Perion Network sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Camtek and Perion Network

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

The idea behind Camtek and Perion Network 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.