Correlation Between Mainstay Moderate and Timothy Plan
Can any of the company-specific risk be diversified away by investing in both Mainstay Moderate 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 Mainstay Moderate and Timothy Plan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Moderate Etf and Timothy Plan Conservative, you can compare the effects of market volatilities on Mainstay Moderate 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 Mainstay Moderate with a short position of Timothy Plan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Moderate and Timothy Plan.
Diversification Opportunities for Mainstay Moderate and Timothy Plan
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mainstay and Timothy is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Moderate Etf and Timothy Plan Conservative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timothy Plan Conservative and Mainstay Moderate 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 Mainstay Moderate Etf 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 Conservative has no effect on the direction of Mainstay Moderate i.e., Mainstay Moderate and Timothy Plan go up and down completely randomly.
Pair Corralation between Mainstay Moderate and Timothy Plan
Assuming the 90 days horizon Mainstay Moderate is expected to generate 1.47 times less return on investment than Timothy Plan. In addition to that, Mainstay Moderate is 1.54 times more volatile than Timothy Plan Conservative. It trades about 0.14 of its total potential returns per unit of risk. Timothy Plan Conservative is currently generating about 0.32 per unit of volatility. If you would invest 1,007 in Timothy Plan Conservative on October 24, 2024 and sell it today you would earn a total of 24.00 from holding Timothy Plan Conservative or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Moderate Etf vs. Timothy Plan Conservative
Performance |
| Timeline |
| Mainstay Moderate Etf |
| Timothy Plan Conservative |
Mainstay Moderate and Timothy Plan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Moderate and Timothy Plan
The main advantage of trading using opposite Mainstay Moderate and Timothy Plan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Moderate 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.| Mainstay Moderate vs. Lord Abbett Diversified | Mainstay Moderate vs. Calvert Conservative Allocation | Mainstay Moderate vs. Timothy Plan Conservative | Mainstay Moderate vs. Jhancock Diversified Macro |
| Timothy Plan vs. Morningstar Defensive Bond | Timothy Plan vs. Multisector Bond Sma | Timothy Plan vs. Pace Municipal Fixed | Timothy Plan vs. Federated High Yield |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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