Correlation Between Timothy Plan and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Timothy Plan and Amg Managers 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 Amg Managers 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 Amg Managers Skyline, you can compare the effects of market volatilities on Timothy Plan and Amg Managers 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 Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Timothy Plan and Amg Managers.
Diversification Opportunities for Timothy Plan and Amg Managers
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Timothy and Amg is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Timothy Plan International and Amg Managers Skyline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Skyline 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 Amg Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Managers Skyline has no effect on the direction of Timothy Plan i.e., Timothy Plan and Amg Managers go up and down completely randomly.
Pair Corralation between Timothy Plan and Amg Managers
Assuming the 90 days horizon Timothy Plan International is expected to generate 0.7 times more return on investment than Amg Managers. However, Timothy Plan International is 1.42 times less risky than Amg Managers. It trades about 0.08 of its potential returns per unit of risk. Amg Managers Skyline is currently generating about 0.0 per unit of risk. If you would invest 1,507 in Timothy Plan International on August 21, 2025 and sell it today you would earn a total of 57.00 from holding Timothy Plan International or generate 3.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Timothy Plan International vs. Amg Managers Skyline
Performance |
| Timeline |
| Timothy Plan Interna |
| Amg Managers Skyline |
Timothy Plan and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Timothy Plan and Amg Managers
The main advantage of trading using opposite Timothy Plan and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Timothy Plan position performs unexpectedly, Amg Managers 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 Amg Managers will offset losses from the drop in Amg Managers' long position.| Timothy Plan vs. Timothy Small Cap Value | Timothy Plan vs. Timothy Plan Small | Timothy Plan vs. Timothy Plan Large | Timothy Plan vs. Wasatch Emerging Markets |
| Amg Managers vs. Dreyfus Opportunistic Small | Amg Managers vs. Nationwide Highmark Small | Amg Managers vs. Summit Global Investments | Amg Managers vs. Hennessy Small Cap |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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