Correlation Between Sparq Systems and Camtek

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Can any of the company-specific risk be diversified away by investing in both Sparq Systems 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 Sparq Systems and Camtek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sparq Systems and Camtek, you can compare the effects of market volatilities on Sparq Systems 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 Sparq Systems with a short position of Camtek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparq Systems and Camtek.

Diversification Opportunities for Sparq Systems and Camtek

-0.64
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Sparq and Camtek is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Sparq Systems and Camtek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camtek and Sparq Systems 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 Sparq Systems 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 Sparq Systems i.e., Sparq Systems and Camtek go up and down completely randomly.

Pair Corralation between Sparq Systems and Camtek

Assuming the 90 days trading horizon Sparq Systems is expected to under-perform the Camtek. In addition to that, Sparq Systems is 1.16 times more volatile than Camtek. It trades about -0.05 of its total potential returns per unit of risk. Camtek is currently generating about 0.11 per unit of volatility. If you would invest  8,394  in Camtek on August 15, 2025 and sell it today you would earn a total of  2,016  from holding Camtek or generate 24.02% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy98.41%
ValuesDaily Returns

Sparq Systems  vs.  Camtek

 Performance 
       Timeline  
Sparq Systems 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Sparq Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in December 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.
Camtek 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Camtek are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating primary indicators, Camtek unveiled solid returns over the last few months and may actually be approaching a breakup point.

Sparq Systems and Camtek Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Sparq Systems and Camtek

The main advantage of trading using opposite Sparq Systems and Camtek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparq Systems 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 Sparq Systems 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.
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.

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