Correlation Between Mainstay Moderate and Timothy Plan

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

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

Diversification Opportunities for Mainstay Moderate and Timothy Plan

0.95

Correlation Coefficient

Mainstay Moderate  Timothy Plan

Almost no diversification

The 3 months correlation between Mainstay and Timothy is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Moderate Etf and Timothy Plan International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timothy Plan Interna and Mainstay Moderate 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 Mainstay Moderate Etf 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 Interna has no effect on the direction of Mainstay Moderate i.e., Mainstay Moderate and Timothy Plan go up and down completely randomly.

Pair Corralation between Mainstay Moderate and Timothy Plan

Assuming the 90 days horizon Mainstay Moderate is expected to generate 1.29 times less return on investment than Timothy Plan. But when comparing it to its historical volatility, Mainstay Moderate Etf is 1.6 times less risky than Timothy Plan. It trades about 0.13 of its potential returns per unit of risk. Timothy Plan International is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  1,521  in Timothy Plan International on August 12, 2025 and sell it today you would earn a total of  69.00  from holding Timothy Plan International or generate 4.54% return on investment over 90 days.

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

Mainstay Moderate Etf  vs.  Timothy Plan International

Mainstay Moderate Etf

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Mainstay Moderate Etf are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Mainstay Moderate is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Timothy Plan Interna

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Timothy Plan International are ranked lower than 8 (%) 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 Mainstay Moderate and Timothy Plan

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

Check out your portfolio center.

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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.