Correlation Between Camtek and Atomera

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

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

Diversification Opportunities for Camtek and Atomera

0.46

Correlation Coefficient

Camtek  Atomera

Very weak diversification

The 3 months correlation between Camtek and Atomera is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Camtek and Atomera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atomera 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 Atomera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atomera has no effect on the direction of Camtek i.e., Camtek and Atomera go up and down completely randomly.

Pair Corralation between Camtek and Atomera

Given the investment horizon of 90 days Camtek is expected to generate 3.61 times less return on investment than Atomera. But when comparing it to its historical volatility, Camtek is 3.03 times less risky than Atomera. It trades about 0.03 of its potential returns per unit of risk. Atomera is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  618.00  in Atomera on November 28, 2024 and sell it today you would lose (83.00) from holding Atomera or give up 13.43% of portfolio value over 90 days.

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

Camtek  vs.  Atomera

Camtek

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Camtek are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating primary indicators, Camtek may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Atomera

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Atomera are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Atomera displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Camtek and Atomera

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

The idea behind Camtek and Atomera 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..