Correlation Between Arrow Managed and Timothy Plan
Can any of the company-specific risk be diversified away by investing in both Arrow Managed 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 Arrow Managed and Timothy Plan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arrow Managed Futures and Timothy Plan High, you can compare the effects of market volatilities on Arrow Managed 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 Arrow Managed with a short position of Timothy Plan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arrow Managed and Timothy Plan.
Diversification Opportunities for Arrow Managed and Timothy Plan
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Arrow and Timothy is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Arrow Managed Futures and Timothy Plan High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timothy Plan High and Arrow Managed 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 Arrow Managed Futures 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 High has no effect on the direction of Arrow Managed i.e., Arrow Managed and Timothy Plan go up and down completely randomly.
Pair Corralation between Arrow Managed and Timothy Plan
Assuming the 90 days horizon Arrow Managed Futures is expected to under-perform the Timothy Plan. In addition to that, Arrow Managed is 7.06 times more volatile than Timothy Plan High. It trades about -0.01 of its total potential returns per unit of risk. Timothy Plan High is currently generating about 0.19 per unit of volatility. If you would invest 793.00 in Timothy Plan High on September 12, 2024 and sell it today you would earn a total of 119.00 from holding Timothy Plan High or generate 15.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arrow Managed Futures vs. Timothy Plan High
Performance |
| Timeline |
| Arrow Managed Futures |
| Timothy Plan High |
Arrow Managed and Timothy Plan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arrow Managed and Timothy Plan
The main advantage of trading using opposite Arrow Managed and Timothy Plan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arrow Managed 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.| Arrow Managed vs. Artisan Small Cap | Arrow Managed vs. Mid Cap Growth | Arrow Managed vs. L Abbett Growth | Arrow Managed vs. Chase Growth Fund |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |