Correlation Between Camtek and Teradyne
Can any of the company-specific risk be diversified away by investing in both Camtek and Teradyne 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 Teradyne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camtek and Teradyne, you can compare the effects of market volatilities on Camtek and Teradyne 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 Teradyne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camtek and Teradyne.
Diversification Opportunities for Camtek and Teradyne
Poor diversification
The 3 months correlation between Camtek and Teradyne is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Camtek and Teradyne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teradyne 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 Teradyne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teradyne has no effect on the direction of Camtek i.e., Camtek and Teradyne go up and down completely randomly.
Pair Corralation between Camtek and Teradyne
Given the investment horizon of 90 days Camtek is expected to generate 1.49 times less return on investment than Teradyne. But when comparing it to its historical volatility, Camtek is 1.06 times less risky than Teradyne. It trades about 0.13 of its potential returns per unit of risk. Teradyne is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 8,174 in Teradyne on May 26, 2025 and sell it today you would earn a total of 3,356 from holding Teradyne or generate 41.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Camtek vs. Teradyne
Performance |
| Timeline |
| Camtek |
| Teradyne |
Camtek and Teradyne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camtek and Teradyne
The main advantage of trading using opposite Camtek and Teradyne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camtek position performs unexpectedly, Teradyne 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 Teradyne will offset losses from the drop in Teradyne's long position.| Camtek vs. Onto Innovation | Camtek vs. Amtech Systems | Camtek vs. Veeco Instruments | Camtek vs. Ichor Holdings |
| Teradyne vs. Applied Materials | Teradyne vs. ASML Holding NV | Teradyne vs. Axcelis Technologies | Teradyne vs. Lam Research Corp |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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