Correlation Between Unitronics and Camtek

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

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

Diversification Opportunities for Unitronics and Camtek

-0.45

Correlation Coefficient

Unitronics  Camtek

Very good diversification

The 3 months correlation between Unitronics and Camtek is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Unitronics and Camtek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camtek and Unitronics 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 Unitronics 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 Unitronics i.e., Unitronics and Camtek go up and down completely randomly.

Pair Corralation between Unitronics and Camtek

Assuming the 90 days trading horizon Unitronics is expected to under-perform the Camtek. But the stock apears to be less risky and, when comparing its historical volatility, Unitronics is 1.35 times less risky than Camtek. The stock trades about -0.07 of its potential returns per unit of risk. The Camtek is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  2,400,000  in Camtek on April 24, 2025 and sell it today you would earn a total of  740,000  from holding Camtek or generate 30.83% return on investment over 90 days.

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

Unitronics  vs.  Camtek

Unitronics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Unitronics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Camtek

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Camtek are ranked lower than 17 (%) 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.

Pair Trading with Unitronics and Camtek

The main advantage of trading using opposite Unitronics and Camtek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unitronics 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 Unitronics 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.