Correlation Between Camtek and Bezeq Israeli
Can any of the company-specific risk be diversified away by investing in both Camtek and Bezeq Israeli 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 Bezeq Israeli into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camtek and Bezeq Israeli Telecommunication, you can compare the effects of market volatilities on Camtek and Bezeq Israeli 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 Bezeq Israeli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camtek and Bezeq Israeli.
Diversification Opportunities for Camtek and Bezeq Israeli
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Camtek and Bezeq is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Camtek and Bezeq Israeli Telecommunicatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bezeq Israeli Teleco 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 Bezeq Israeli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bezeq Israeli Teleco has no effect on the direction of Camtek i.e., Camtek and Bezeq Israeli go up and down completely randomly.
Pair Corralation between Camtek and Bezeq Israeli
Assuming the 90 days trading horizon Camtek is expected to under-perform the Bezeq Israeli. In addition to that, Camtek is 1.13 times more volatile than Bezeq Israeli Telecommunication. It trades about -0.17 of its total potential returns per unit of risk. Bezeq Israeli Telecommunication is currently generating about -0.05 per unit of volatility. If you would invest 47,860 in Bezeq Israeli Telecommunication on January 26, 2024 and sell it today you would lose (790.00) from holding Bezeq Israeli Telecommunication or give up 1.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Camtek vs. Bezeq Israeli Telecommunicatio
Performance |
| Timeline |
| Camtek |
| Bezeq Israeli Teleco |
Camtek and Bezeq Israeli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camtek and Bezeq Israeli
The main advantage of trading using opposite Camtek and Bezeq Israeli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camtek position performs unexpectedly, Bezeq Israeli 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 Bezeq Israeli will offset losses from the drop in Bezeq Israeli's long position.| Camtek vs. Tower Semiconductor | Camtek vs. Nice | Camtek vs. Elbit Systems | Camtek vs. Sapiens International |
| Bezeq Israeli vs. Partner | Bezeq Israeli vs. Tower Semiconductor | Bezeq Israeli vs. Israel Discount Bank |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |