Correlation Between Timothy Plan and Timothy Plan
Can any of the company-specific risk be diversified away by investing in both Timothy Plan 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 Plan 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 Plan Conservative and Timothy Plan Defensive, you can compare the effects of market volatilities on Timothy Plan 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 Plan with a short position of Timothy Plan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Timothy Plan and Timothy Plan.
Diversification Opportunities for Timothy Plan and Timothy Plan
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Timothy and Timothy is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Timothy Plan Conservative and Timothy Plan Defensive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timothy Plan Defensive and Timothy Plan 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 Plan Conservative 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 Defensive has no effect on the direction of Timothy Plan i.e., Timothy Plan and Timothy Plan go up and down completely randomly.
Pair Corralation between Timothy Plan and Timothy Plan
Assuming the 90 days horizon Timothy Plan Conservative is expected to generate 0.64 times more return on investment than Timothy Plan. However, Timothy Plan Conservative is 1.56 times less risky than Timothy Plan. It trades about 0.06 of its potential returns per unit of risk. Timothy Plan Defensive is currently generating about -0.06 per unit of risk. If you would invest 1,057 in Timothy Plan Conservative on September 12, 2024 and sell it today you would earn a total of 13.00 from holding Timothy Plan Conservative or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Timothy Plan Conservative vs. Timothy Plan Defensive
Performance |
| Timeline |
| Timothy Plan Conservative |
| Timothy Plan Defensive |
Timothy Plan and Timothy Plan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Timothy Plan and Timothy Plan
The main advantage of trading using opposite Timothy Plan and Timothy Plan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Timothy Plan 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 Plan vs. Ishares Municipal Bond | Timothy Plan vs. Old Westbury Municipal | Timothy Plan vs. Blrc Sgy Mnp | Timothy Plan vs. Morningstar Municipal Bond |
| Timothy Plan vs. Queens Road Small | Timothy Plan vs. Omni Small Cap Value | Timothy Plan vs. Pace Smallmedium Value | Timothy Plan vs. Ab Discovery Value |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |