Correlation Between Western Assets and Timothy Plan
Can any of the company-specific risk be diversified away by investing in both Western Assets and Timothy Plan 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 Western Assets and Timothy Plan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Assets Emerging and Timothy Plan High, you can compare the effects of market volatilities on Western Assets and Timothy Plan 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 Western Assets with a short position of Timothy Plan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Assets and Timothy Plan.
Diversification Opportunities for Western Assets and Timothy Plan
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Western and Timothy is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Western Assets Emerging and Timothy Plan High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timothy Plan High and Western Assets 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 Western Assets Emerging are associated (or correlated) with Timothy Plan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timothy Plan High has no effect on the direction of Western Assets i.e., Western Assets and Timothy Plan go up and down completely randomly.
Pair Corralation between Western Assets and Timothy Plan
Assuming the 90 days horizon Western Assets is expected to generate 1.19 times less return on investment than Timothy Plan. In addition to that, Western Assets is 2.01 times more volatile than Timothy Plan High. It trades about 0.18 of its total potential returns per unit of risk. Timothy Plan High is currently generating about 0.43 per unit of volatility. If you would invest 910.00 in Timothy Plan High on June 12, 2025 and sell it today you would earn a total of 11.00 from holding Timothy Plan High or generate 1.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Assets Emerging vs. Timothy Plan High
Performance |
| Timeline |
| Western Assets Emerging |
| Timothy Plan High |
Western Assets and Timothy Plan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Assets and Timothy Plan
The main advantage of trading using opposite Western Assets and Timothy Plan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Assets position performs unexpectedly, Timothy Plan 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 Plan will offset losses from the drop in Timothy Plan's long position.| Western Assets vs. Ab Bond Inflation | Western Assets vs. Pace Strategic Fixed | Western Assets vs. Bbh Intermediate Municipal | Western Assets vs. Ab Bond Inflation |
| Timothy Plan vs. Aam Select Income | Timothy Plan vs. Qs Large Cap | Timothy Plan vs. Ab Value Fund | Timothy Plan vs. Flkypx |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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