Correlation Between Timothy Plan and Timothy Israel
Can any of the company-specific risk be diversified away by investing in both Timothy Plan and Timothy Israel 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 Israel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Timothy Plan International and Timothy Israel Mon, you can compare the effects of market volatilities on Timothy Plan and Timothy Israel 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 Israel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Timothy Plan and Timothy Israel.
Diversification Opportunities for Timothy Plan and Timothy Israel
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Timothy and Timothy is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Timothy Plan International and Timothy Israel Mon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timothy Israel Mon 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 International are associated (or correlated) with Timothy Israel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timothy Israel Mon has no effect on the direction of Timothy Plan i.e., Timothy Plan and Timothy Israel go up and down completely randomly.
Pair Corralation between Timothy Plan and Timothy Israel
Assuming the 90 days horizon Timothy Plan International is expected to under-perform the Timothy Israel. But the mutual fund apears to be less risky and, when comparing its historical volatility, Timothy Plan International is 1.22 times less risky than Timothy Israel. The mutual fund trades about -0.13 of its potential returns per unit of risk. The Timothy Israel Mon is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 2,334 in Timothy Israel Mon on August 31, 2024 and sell it today you would earn a total of 137.00 from holding Timothy Israel Mon or generate 5.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Timothy Plan International vs. Timothy Israel Mon
Performance |
| Timeline |
| Timothy Plan Interna |
| Timothy Israel Mon |
Timothy Plan and Timothy Israel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Timothy Plan and Timothy Israel
The main advantage of trading using opposite Timothy Plan and Timothy Israel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Timothy Plan position performs unexpectedly, Timothy Israel 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 Israel will offset losses from the drop in Timothy Israel's long position.| Timothy Plan vs. Vanguard Total International | Timothy Plan vs. Vanguard Developed Markets | Timothy Plan vs. Vanguard Developed Markets | Timothy Plan vs. HUMANA INC |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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