Correlation Between Dow Jones and Timothy Fixed
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Timothy Fixed 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 Dow Jones and Timothy Fixed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and Timothy Fixed Income, you can compare the effects of market volatilities on Dow Jones and Timothy Fixed 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 Dow Jones with a short position of Timothy Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Timothy Fixed.
Diversification Opportunities for Dow Jones and Timothy Fixed
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dow and Timothy is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Timothy Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timothy Fixed Income and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with Timothy Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timothy Fixed Income has no effect on the direction of Dow Jones i.e., Dow Jones and Timothy Fixed go up and down completely randomly.
Pair Corralation between Dow Jones and Timothy Fixed
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 2.47 times more return on investment than Timothy Fixed. However, Dow Jones is 2.47 times more volatile than Timothy Fixed Income. It trades about 0.2 of its potential returns per unit of risk. Timothy Fixed Income is currently generating about -0.05 per unit of risk. If you would invest 4,093,693 in Dow Jones Industrial on September 2, 2024 and sell it today you would earn a total of 397,372 from holding Dow Jones Industrial or generate 9.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Timothy Fixed Income
Performance |
| Timeline |
Dow Jones and Timothy Fixed Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Timothy Fixed Income
Pair trading matchups for Timothy Fixed
Pair Trading with Dow Jones and Timothy Fixed
The main advantage of trading using opposite Dow Jones and Timothy Fixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Timothy Fixed 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 Timothy Fixed will offset losses from the drop in Timothy Fixed's long position.| Dow Jones vs. Dream Finders Homes | Dow Jones vs. GEN Restaurant Group, | Dow Jones vs. National Beverage Corp | Dow Jones vs. BJs Restaurants |
| Timothy Fixed vs. Timothy Plan Growth | Timothy Fixed vs. Timothy Plan Growth | Timothy Fixed vs. Timothy Aggressive Growth | Timothy Fixed vs. Timothy Israel Mon |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |