Correlation Between YieldMax N and Timothy Plan

Can any of the company-specific risk be diversified away by investing in both YieldMax N 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 YieldMax N and Timothy Plan into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between YieldMax N Option and Timothy Plan High, you can compare the effects of market volatilities on YieldMax N 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 YieldMax N with a short position of Timothy Plan. Check out your portfolio center. Please also check ongoing floating volatility patterns of YieldMax N and Timothy Plan.

Diversification Opportunities for YieldMax N and Timothy Plan

0.69

Correlation Coefficient

YieldMax N  Timothy Plan

Poor diversification

The 3 months correlation between YieldMax and Timothy is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax N Option 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 YieldMax N 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 YieldMax N Option 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 YieldMax N i.e., YieldMax N and Timothy Plan go up and down completely randomly.

Pair Corralation between YieldMax N and Timothy Plan

Given the investment horizon of 90 days YieldMax N Option is expected to generate 25.28 times more return on investment than Timothy Plan. However, YieldMax N is 25.28 times more volatile than Timothy Plan High. It trades about 0.04 of its potential returns per unit of risk. Timothy Plan High is currently generating about 0.34 per unit of risk. If you would invest  697.00  in YieldMax N Option on May 18, 2025 and sell it today you would earn a total of  38.00  from holding YieldMax N Option or generate 5.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

YieldMax N Option  vs.  Timothy Plan High

YieldMax N Option

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in YieldMax N Option are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, YieldMax N may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Timothy Plan High

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Timothy Plan High are ranked lower than 26 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Timothy Plan is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with YieldMax N and Timothy Plan

The main advantage of trading using opposite YieldMax N and Timothy Plan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YieldMax N 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.

The idea behind YieldMax N Option and Timothy Plan High pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.