Correlation Between Timothy Plan and Timothy Strategic
Can any of the company-specific risk be diversified away by investing in both Timothy Plan and Timothy Strategic 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 Strategic 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 Timothy Strategic Growth, you can compare the effects of market volatilities on Timothy Plan and Timothy Strategic 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 Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Timothy Plan and Timothy Strategic.
Diversification Opportunities for Timothy Plan and Timothy Strategic
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Timothy and Timothy is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Timothy Plan Large and Timothy Strategic Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timothy Strategic Growth 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 Timothy Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timothy Strategic Growth has no effect on the direction of Timothy Plan i.e., Timothy Plan and Timothy Strategic go up and down completely randomly.
Pair Corralation between Timothy Plan and Timothy Strategic
Assuming the 90 days horizon Timothy Plan Large is expected to generate 1.3 times more return on investment than Timothy Strategic. However, Timothy Plan is 1.3 times more volatile than Timothy Strategic Growth. It trades about 0.06 of its potential returns per unit of risk. Timothy Strategic Growth is currently generating about 0.07 per unit of risk. If you would invest 1,377 in Timothy Plan Large on June 3, 2025 and sell it today you would earn a total of 22.00 from holding Timothy Plan Large or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Timothy Plan Large vs. Timothy Strategic Growth
Performance |
| Timeline |
| Timothy Plan Large |
| Timothy Strategic Growth |
Timothy Plan and Timothy Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Timothy Plan and Timothy Strategic
The main advantage of trading using opposite Timothy Plan and Timothy Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Timothy Plan position performs unexpectedly, Timothy Strategic 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 Strategic will offset losses from the drop in Timothy Strategic's long position.| Timothy Plan vs. Timothy Largemid Cap Value | Timothy Plan vs. Timothy Small Cap Value | Timothy Plan vs. Timothy Aggressive Growth | Timothy Plan vs. Timothy Servative Growth |
| Timothy Strategic vs. Timothy Fixed Income | Timothy Strategic vs. Timothy Fixed Income | Timothy Strategic vs. Timothy Plan Growth | Timothy Strategic 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |