Correlation Between Timothy Plan and Advisors Capital
Can any of the company-specific risk be diversified away by investing in both Timothy Plan and Advisors Capital 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 Advisors Capital 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 Advisors Capital Tactical, you can compare the effects of market volatilities on Timothy Plan and Advisors Capital 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 Advisors Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Timothy Plan and Advisors Capital.
Diversification Opportunities for Timothy Plan and Advisors Capital
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Timothy and Advisors is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Timothy Plan International and Advisors Capital Tactical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advisors Capital Tactical 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 Advisors Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advisors Capital Tactical has no effect on the direction of Timothy Plan i.e., Timothy Plan and Advisors Capital go up and down completely randomly.
Pair Corralation between Timothy Plan and Advisors Capital
Assuming the 90 days horizon Timothy Plan International is expected to generate 2.56 times more return on investment than Advisors Capital. However, Timothy Plan is 2.56 times more volatile than Advisors Capital Tactical. It trades about 0.29 of its potential returns per unit of risk. Advisors Capital Tactical is currently generating about 0.15 per unit of risk. If you would invest 1,291 in Timothy Plan International on April 17, 2025 and sell it today you would earn a total of 168.00 from holding Timothy Plan International or generate 13.01% 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 International vs. Advisors Capital Tactical
Performance |
| Timeline |
| Timothy Plan Interna |
| Advisors Capital Tactical |
Timothy Plan and Advisors Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Timothy Plan and Advisors Capital
The main advantage of trading using opposite Timothy Plan and Advisors Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Timothy Plan position performs unexpectedly, Advisors Capital 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 Advisors Capital will offset losses from the drop in Advisors Capital's long position.| Timothy Plan vs. Goldman Sachs Financial | Timothy Plan vs. Transamerica Financial Life | Timothy Plan vs. John Hancock Financial | Timothy Plan vs. Gabelli Global Financial |
| Advisors Capital vs. Emerging Markets Fund | Advisors Capital vs. Equity Growth Fund | Advisors Capital vs. Global Growth Fund | Advisors Capital vs. Small Pany Fund |
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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