Correlation Between Timothy Fixed and Timothy Plan
Can any of the company-specific risk be diversified away by investing in both Timothy Fixed 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 Timothy Fixed and Timothy Plan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Timothy Fixed Income and Timothy Plan Conservative, you can compare the effects of market volatilities on Timothy Fixed 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 Timothy Fixed with a short position of Timothy Plan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Timothy Fixed and Timothy Plan.
Diversification Opportunities for Timothy Fixed and Timothy Plan
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Timothy and Timothy is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Timothy Fixed Income 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 Timothy Fixed 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 Timothy Fixed Income 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 Timothy Fixed i.e., Timothy Fixed and Timothy Plan go up and down completely randomly.
Pair Corralation between Timothy Fixed and Timothy Plan
Assuming the 90 days horizon Timothy Fixed is expected to generate 2.17 times less return on investment than Timothy Plan. But when comparing it to its historical volatility, Timothy Fixed Income is 1.04 times less risky than Timothy Plan. It trades about 0.09 of its potential returns per unit of risk. Timothy Plan Conservative is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,056 in Timothy Plan Conservative on August 30, 2024 and sell it today you would earn a total of 16.00 from holding Timothy Plan Conservative or generate 1.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Timothy Fixed Income vs. Timothy Plan Conservative
Performance |
| Timeline |
| Timothy Fixed Income |
| Timothy Plan Conservative |
Timothy Fixed and Timothy Plan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Timothy Fixed and Timothy Plan
The main advantage of trading using opposite Timothy Fixed and Timothy Plan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Timothy Fixed 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.| Timothy Fixed vs. Timothy Fixed Income | Timothy Fixed vs. Timothy Plan Growth | Timothy Fixed vs. Timothy Plan Growth | Timothy Fixed vs. Timothy Aggressive Growth |
| Timothy Plan vs. Timothy Fixed Income | Timothy Plan vs. Timothy Fixed Income | Timothy Plan vs. Timothy Plan Growth | Timothy Plan vs. Timothy Plan Growth |
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.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |