Correlation Between Timothy Plan and Timothy Aggressive
Can any of the company-specific risk be diversified away by investing in both Timothy Plan and Timothy Aggressive 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 Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Timothy Plan Defensive and Timothy Aggressive Growth, you can compare the effects of market volatilities on Timothy Plan and Timothy Aggressive 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 Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Timothy Plan and Timothy Aggressive.
Diversification Opportunities for Timothy Plan and Timothy Aggressive
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Timothy and Timothy is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Timothy Plan Defensive and Timothy Aggressive Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timothy Aggressive 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 Defensive are associated (or correlated) with Timothy Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timothy Aggressive Growth has no effect on the direction of Timothy Plan i.e., Timothy Plan and Timothy Aggressive go up and down completely randomly.
Pair Corralation between Timothy Plan and Timothy Aggressive
Assuming the 90 days horizon Timothy Plan is expected to generate 3.64 times less return on investment than Timothy Aggressive. But when comparing it to its historical volatility, Timothy Plan Defensive is 2.26 times less risky than Timothy Aggressive. It trades about 0.16 of its potential returns per unit of risk. Timothy Aggressive Growth is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,126 in Timothy Aggressive Growth on April 25, 2025 and sell it today you would earn a total of 197.00 from holding Timothy Aggressive Growth or generate 17.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Timothy Plan Defensive vs. Timothy Aggressive Growth
Performance |
| Timeline |
| Timothy Plan Defensive |
| Timothy Aggressive Growth |
Timothy Plan and Timothy Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Timothy Plan and Timothy Aggressive
The main advantage of trading using opposite Timothy Plan and Timothy Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Timothy Plan position performs unexpectedly, Timothy Aggressive 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 Aggressive will offset losses from the drop in Timothy Aggressive's long position.| Timothy Plan vs. Cref Money Market | Timothy Plan vs. Fidelity Money Market | Timothy Plan vs. Nationwide Mutual Funds | Timothy Plan vs. Matson Money Equity |
| Timothy Aggressive vs. Aqr Diversified Arbitrage | Timothy Aggressive vs. Voya Solution Conservative | Timothy Aggressive vs. Allianzgi Diversified Income | Timothy Aggressive vs. Lord Abbett Diversified |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Positions Ratings 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 |