Correlation Between Loomis Sayles and Timothy Plan

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

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

Diversification Opportunities for Loomis Sayles and Timothy Plan

0.48

Correlation Coefficient

Loomis Sayles  Timothy Plan

Very weak diversification

The 3 months correlation between Loomis and TIMOTHY is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Inflation and Timothy Plan Defensive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timothy Plan Defensive and Loomis Sayles 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 Loomis Sayles Inflation 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 Defensive has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Timothy Plan go up and down completely randomly.

Pair Corralation between Loomis Sayles and Timothy Plan

Assuming the 90 days horizon Loomis Sayles is expected to generate 605.0 times less return on investment than Timothy Plan. But when comparing it to its historical volatility, Loomis Sayles Inflation is 2.94 times less risky than Timothy Plan. It trades about 0.0 of its potential returns per unit of risk. Timothy Plan Defensive is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  1,653  in Timothy Plan Defensive on September 8, 2025 and sell it today you would earn a total of  42.00  from holding Timothy Plan Defensive or generate 2.54% return on investment over 90 days.

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

Loomis Sayles Inflation  vs.  Timothy Plan Defensive

Loomis Sayles Inflation

Risk-Adjusted Performance

Weakest

Over the last 90 days Loomis Sayles Inflation has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Loomis Sayles is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Timothy Plan Defensive

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Timothy Plan Defensive are ranked lower than 12 (%) 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 Loomis Sayles and Timothy Plan

The main advantage of trading using opposite Loomis Sayles and Timothy Plan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles 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 Loomis Sayles Inflation and Timothy Plan Defensive 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.