Correlation Between Value Fund and Timothy Plan
Can any of the company-specific risk be diversified away by investing in both Value Fund and Timothy Plan 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 Value Fund and Timothy Plan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Value Fund Value and Timothy Plan International, you can compare the effects of market volatilities on Value Fund and Timothy Plan 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 Value Fund with a short position of Timothy Plan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Value Fund and Timothy Plan.
Diversification Opportunities for Value Fund and Timothy Plan
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Value and Timothy is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Value Fund Value and Timothy Plan International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timothy Plan Interna and Value Fund 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 Value Fund Value are associated (or correlated) with Timothy Plan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timothy Plan Interna has no effect on the direction of Value Fund i.e., Value Fund and Timothy Plan go up and down completely randomly.
Pair Corralation between Value Fund and Timothy Plan
Assuming the 90 days horizon Value Fund Value is expected to generate 1.0 times more return on investment than Timothy Plan. However, Value Fund Value is 1.0 times less risky than Timothy Plan. It trades about 0.28 of its potential returns per unit of risk. Timothy Plan International is currently generating about -0.13 per unit of risk. If you would invest 5,539 in Value Fund Value on August 31, 2024 and sell it today you would earn a total of 249.00 from holding Value Fund Value or generate 4.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Value Fund Value vs. Timothy Plan International
Performance |
| Timeline |
| Value Fund Value |
| Timothy Plan Interna |
Value Fund and Timothy Plan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Value Fund and Timothy Plan
The main advantage of trading using opposite Value Fund and Timothy Plan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Value Fund position performs unexpectedly, Timothy Plan 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 Plan will offset losses from the drop in Timothy Plan's long position.| Value Fund vs. Inverse Government Long | Value Fund vs. John Hancock Government | Value Fund vs. Dreyfus Government Cash | Value Fund vs. Us Government Securities |
| Timothy Plan vs. Vanguard Total International | Timothy Plan vs. Vanguard Developed Markets | Timothy Plan vs. Vanguard Developed Markets | Timothy Plan vs. HUMANA INC |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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