Correlation Between Camtek and Priortech

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

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

Diversification Opportunities for Camtek and Priortech

0.95

Correlation Coefficient

Camtek  Priortech

Almost no diversification

The 3 months correlation between Camtek and Priortech is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Camtek and Priortech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Priortech 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 Priortech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Priortech has no effect on the direction of Camtek i.e., Camtek and Priortech go up and down completely randomly.

Pair Corralation between Camtek and Priortech

Assuming the 90 days trading horizon Camtek is expected to generate 1.08 times less return on investment than Priortech. But when comparing it to its historical volatility, Camtek is 1.11 times less risky than Priortech. It trades about 0.26 of its potential returns per unit of risk. Priortech is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  1,418,000  in Priortech on April 22, 2025 and sell it today you would earn a total of  574,000  from holding Priortech or generate 40.48% 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.  Priortech

Camtek

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Camtek are ranked lower than 20 (%) 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.

Priortech

Risk-Adjusted Performance

Solid

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

Pair Trading with Camtek and Priortech

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

The idea behind Camtek and Priortech 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.