Correlation Between Camtek and Axcelis Technologies

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

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

Diversification Opportunities for Camtek and Axcelis Technologies

0.81

Correlation Coefficient

Camtek  Axcelis Technologies

Very poor diversification

The 3 months correlation between Camtek and Axcelis is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Camtek and Axcelis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axcelis Technologies 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 Axcelis Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axcelis Technologies has no effect on the direction of Camtek i.e., Camtek and Axcelis Technologies go up and down completely randomly.

Pair Corralation between Camtek and Axcelis Technologies

Given the investment horizon of 90 days Camtek is expected to under-perform the Axcelis Technologies. In addition to that, Camtek is 1.39 times more volatile than Axcelis Technologies. It trades about -0.11 of its total potential returns per unit of risk. Axcelis Technologies is currently generating about -0.14 per unit of volatility. If you would invest  7,002  in Axcelis Technologies on December 29, 2024 and sell it today you would lose (1,624) from holding Axcelis Technologies or give up 23.19% of portfolio value over 90 days.

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

Camtek  vs.  Axcelis Technologies

Camtek

Risk-Adjusted Performance

Very Weak

Over the last 90 days Camtek has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's primary indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Axcelis Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Axcelis Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Camtek and Axcelis Technologies

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

The idea behind Camtek and Axcelis Technologies 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.

Check out your portfolio center.

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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.