Correlation Between Utron and Camtek

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

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

Diversification Opportunities for Utron and Camtek

-0.65

Correlation Coefficient

Utron  Camtek

Excellent diversification

The 3 months correlation between Utron and Camtek is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Utron and Camtek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camtek and Utron 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 Utron 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 Utron i.e., Utron and Camtek go up and down completely randomly.

Pair Corralation between Utron and Camtek

Assuming the 90 days trading horizon Utron is expected to under-perform the Camtek. In addition to that, Utron is 1.16 times more volatile than Camtek. It trades about -0.28 of its total potential returns per unit of risk. Camtek is currently generating about 0.24 per unit of volatility. 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	Weak
Accuracy	100.0%
Values	Daily Returns

Utron  vs.  Camtek

Utron

Risk-Adjusted Performance

Very Weak

Over the last 90 days Utron has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing 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 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.

Pair Trading with Utron and Camtek

The main advantage of trading using opposite Utron and Camtek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Utron 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 Utron 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.