Correlation Between Camtek and MetLife
Can any of the company-specific risk be diversified away by investing in both Camtek and MetLife 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 MetLife into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camtek and MetLife, you can compare the effects of market volatilities on Camtek and MetLife 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 MetLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camtek and MetLife.
Diversification Opportunities for Camtek and MetLife
Weak diversification
The 3 months correlation between Camtek and MetLife is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Camtek and MetLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MetLife 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 MetLife. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MetLife has no effect on the direction of Camtek i.e., Camtek and MetLife go up and down completely randomly.
Pair Corralation between Camtek and MetLife
Assuming the 90 days trading horizon Camtek is expected to generate 2.13 times more return on investment than MetLife. However, Camtek is 2.13 times more volatile than MetLife. It trades about 0.2 of its potential returns per unit of risk. MetLife is currently generating about 0.06 per unit of risk. If you would invest 925,313 in Camtek on January 20, 2024 and sell it today you would earn a total of 2,136,687 from holding Camtek or generate 230.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 80.65% |
| Values | Daily Returns |
Camtek vs. MetLife
Performance |
| Timeline |
| Camtek |
| MetLife |
Camtek and MetLife Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camtek and MetLife
The main advantage of trading using opposite Camtek and MetLife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camtek position performs unexpectedly, MetLife 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 MetLife will offset losses from the drop in MetLife's long position.| Camtek vs. Tower Semiconductor | Camtek vs. Nice | Camtek vs. Elbit Systems | Camtek vs. Sapiens International |
| MetLife vs. Lincoln National | MetLife vs. Aflac Incorporated | MetLife vs. Unum Group | MetLife vs. Manulife Financial 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |