Correlation Between Franklin Adjustable and Timothy Plan

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

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

Diversification Opportunities for Franklin Adjustable and Timothy Plan

0.78

Correlation Coefficient

Franklin Adjustable  Timothy Plan

Poor diversification

The 3 months correlation between Franklin and Timothy is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Adjustable Government and Timothy Plan Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timothy Plan Growth and Franklin Adjustable 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 Franklin Adjustable Government 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 Growth has no effect on the direction of Franklin Adjustable i.e., Franklin Adjustable and Timothy Plan go up and down completely randomly.

Pair Corralation between Franklin Adjustable and Timothy Plan

Assuming the 90 days horizon Franklin Adjustable is expected to generate 1.59 times less return on investment than Timothy Plan. But when comparing it to its historical volatility, Franklin Adjustable Government is 4.45 times less risky than Timothy Plan. It trades about 0.17 of its potential returns per unit of risk. Timothy Plan Growth is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  1,034  in Timothy Plan Growth on July 15, 2025 and sell it today you would earn a total of  15.00  from holding Timothy Plan Growth or generate 1.45% return on investment over 90 days.

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

Franklin Adjustable Government  vs.  Timothy Plan Growth

Franklin Adjustable

Risk-Adjusted Performance

Good

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

Timothy Plan Growth

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Timothy Plan Growth are ranked lower than 4 (%) 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 Franklin Adjustable and Timothy Plan

The main advantage of trading using opposite Franklin Adjustable and Timothy Plan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Adjustable 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 Franklin Adjustable Government and Timothy Plan Growth 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.