Correlation Between Exchange Traded and Timothy Plan
Can any of the company-specific risk be diversified away by investing in both Exchange Traded 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 Exchange Traded and Timothy Plan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exchange Traded Concepts and Timothy Plan International, you can compare the effects of market volatilities on Exchange Traded 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 Exchange Traded with a short position of Timothy Plan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exchange Traded and Timothy Plan.
Diversification Opportunities for Exchange Traded and Timothy Plan
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Exchange and Timothy is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Exchange Traded Concepts 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 Exchange Traded 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 Exchange Traded Concepts 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 Exchange Traded i.e., Exchange Traded and Timothy Plan go up and down completely randomly.
Pair Corralation between Exchange Traded and Timothy Plan
Given the investment horizon of 90 days Exchange Traded Concepts is expected to generate 0.66 times more return on investment than Timothy Plan. However, Exchange Traded Concepts is 1.52 times less risky than Timothy Plan. It trades about 0.17 of its potential returns per unit of risk. Timothy Plan International is currently generating about 0.05 per unit of risk. If you would invest 2,179 in Exchange Traded Concepts on September 2, 2024 and sell it today you would earn a total of 57.00 from holding Exchange Traded Concepts or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 8.06% |
| Values | Daily Returns |
Exchange Traded Concepts vs. Timothy Plan International
Performance |
| Timeline |
| Exchange Traded Concepts |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Timothy Plan Interna |
Exchange Traded and Timothy Plan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exchange Traded and Timothy Plan
The main advantage of trading using opposite Exchange Traded and Timothy Plan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exchange Traded 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.The idea behind Exchange Traded Concepts and Timothy Plan International pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Timothy Plan vs. Timothy Plan LargeMid | Timothy Plan vs. Timothy Plan High | Timothy Plan vs. Timothy Plan Small | Timothy Plan vs. Timothy Plan |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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