Correlation Between Qs Large and Timothy Plan

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

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

Diversification Opportunities for Qs Large and Timothy Plan

0.82

Correlation Coefficient

Qs Large  Timothy Plan

Very poor diversification

The 3 months correlation between LMISX and Timothy is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Qs Large Cap 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 Qs Large 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 Qs Large Cap 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 Qs Large i.e., Qs Large and Timothy Plan go up and down completely randomly.

Pair Corralation between Qs Large and Timothy Plan

Assuming the 90 days horizon Qs Large Cap is expected to generate 1.45 times more return on investment than Timothy Plan. However, Qs Large is 1.45 times more volatile than Timothy Plan Growth. It trades about 0.26 of its potential returns per unit of risk. Timothy Plan Growth is currently generating about 0.12 per unit of risk. If you would invest  2,525  in Qs Large Cap on July 7, 2025 and sell it today you would earn a total of  236.00  from holding Qs Large Cap or generate 9.35% return on investment over 90 days.

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

Qs Large Cap  vs.  Timothy Plan Growth

Qs Large Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Qs Large Cap are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Qs Large may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Timothy Plan Growth

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Timothy Plan Growth are ranked lower than 9 (%) 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 Qs Large and Timothy Plan

The main advantage of trading using opposite Qs Large and Timothy Plan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qs Large 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 Qs Large Cap 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.