Correlation Between NYSE Composite and Timothy Plan
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Timothy Plan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Timothy Plan International, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Timothy Plan. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Timothy Plan.
Diversification Opportunities for NYSE Composite and Timothy Plan
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Timothy is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Timothy Plan go up and down completely randomly.
Pair Corralation between NYSE Composite and Timothy Plan
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.87 times more return on investment than Timothy Plan. However, NYSE Composite is 1.15 times less risky than Timothy Plan. It trades about 0.24 of its potential returns per unit of risk. Timothy Plan International is currently generating about -0.12 per unit of risk. If you would invest 1,954,967 in NYSE Composite on August 27, 2024 and sell it today you would earn a total of 67,069 from holding NYSE Composite or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Timothy Plan International
Performance |
| Timeline |
NYSE Composite and Timothy Plan Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Timothy Plan International
Pair trading matchups for Timothy Plan
Pair Trading with NYSE Composite and Timothy Plan
The main advantage of trading using opposite NYSE Composite and Timothy Plan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Hooker Furniture | NYSE Composite vs. Hudson Pacific Properties | NYSE Composite vs. Canlan Ice Sports | NYSE Composite vs. Boston Properties |
| Timothy Plan vs. Dimensional Core Equity | Timothy Plan vs. Dimensional Emerging Core | Timothy Plan vs. Dimensional Targeted Value | Timothy Plan vs. Dimensional Small Cap |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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