Correlation Between Timothy Plan and Federated Global
Can any of the company-specific risk be diversified away by investing in both Timothy Plan and Federated Global 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 Federated Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Timothy Plan Large and Federated Global Allocation, you can compare the effects of market volatilities on Timothy Plan and Federated Global 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 Federated Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Timothy Plan and Federated Global.
Diversification Opportunities for Timothy Plan and Federated Global
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Timothy and Federated is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Timothy Plan Large and Federated Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Global All 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 Large are associated (or correlated) with Federated Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Global All has no effect on the direction of Timothy Plan i.e., Timothy Plan and Federated Global go up and down completely randomly.
Pair Corralation between Timothy Plan and Federated Global
Assuming the 90 days horizon Timothy Plan Large is expected to generate 1.84 times more return on investment than Federated Global. However, Timothy Plan is 1.84 times more volatile than Federated Global Allocation. It trades about 0.04 of its potential returns per unit of risk. Federated Global Allocation is currently generating about 0.07 per unit of risk. If you would invest 1,135 in Timothy Plan Large on October 8, 2025 and sell it today you would earn a total of 143.00 from holding Timothy Plan Large or generate 12.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Timothy Plan Large vs. Federated Global Allocation
Performance |
| Timeline |
| Timothy Plan Large |
| Federated Global All |
Timothy Plan and Federated Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Timothy Plan and Federated Global
The main advantage of trading using opposite Timothy Plan and Federated Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Timothy Plan position performs unexpectedly, Federated Global 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 Federated Global will offset losses from the drop in Federated Global's long position.| Timothy Plan vs. Timothy Plan International | Timothy Plan vs. Timothy Largemid Cap Value | Timothy Plan vs. First American Investment | Timothy Plan vs. Morgan Stanley China |
| Federated Global vs. Aberdeen Global Dynamic | Federated Global vs. Barings Global Short | Federated Global vs. Timothy Plan Large | Federated Global vs. First American Investment |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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