Correlation Between Shelton E and Timothy Plan

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

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

Diversification Opportunities for Shelton E and Timothy Plan

0.97

Correlation Coefficient

Shelton E  Timothy Plan

Almost no diversification

The 3 months correlation between Shelton and Timothy is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Shelton E Value 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 Shelton E 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 Shelton E Value 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 Shelton E i.e., Shelton E and Timothy Plan go up and down completely randomly.

Pair Corralation between Shelton E and Timothy Plan

Assuming the 90 days horizon Shelton E is expected to generate 2.1 times less return on investment than Timothy Plan. In addition to that, Shelton E is 4.82 times more volatile than Timothy Plan High. It trades about 0.01 of its total potential returns per unit of risk. Timothy Plan High is currently generating about 0.12 per unit of volatility. If you would invest  876.00  in Timothy Plan High on May 4, 2025 and sell it today you would earn a total of  32.00  from holding Timothy Plan High or generate 3.65% return on investment over 90 days.

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

Shelton E Value  vs.  Timothy Plan High

Shelton E Value

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Shelton E Value are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward-looking signals, Shelton E is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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 27 (%) 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 Shelton E and Timothy Plan

The main advantage of trading using opposite Shelton E and Timothy Plan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton E 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 Shelton E Value 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.