Correlation Between Smallcap Fund and Timothy Israel

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

By analyzing existing cross correlation between Smallcap Fund Fka and Timothy Israel Mon, you can compare the effects of market volatilities on Smallcap Fund and Timothy Israel 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 Smallcap Fund with a short position of Timothy Israel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smallcap Fund and Timothy Israel.

Diversification Opportunities for Smallcap Fund and Timothy Israel

0.0

Correlation Coefficient

Smallcap Fund  Timothy Israel

Pay attention - limited upside

The 3 months correlation between Smallcap and Timothy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Smallcap Fund Fka and Timothy Israel Mon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timothy Israel Mon and Smallcap Fund 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 Smallcap Fund Fka are associated (or correlated) with Timothy Israel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timothy Israel Mon has no effect on the direction of Smallcap Fund i.e., Smallcap Fund and Timothy Israel go up and down completely randomly.

Pair Corralation between Smallcap Fund and Timothy Israel

If you would invest  2,454  in Smallcap Fund Fka on May 10, 2025 and sell it today you would earn a total of  161.00  from holding Smallcap Fund Fka or generate 6.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Smallcap Fund Fka  vs.  Timothy Israel Mon

Smallcap Fund Fka

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Smallcap Fund Fka are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak primary indicators, Smallcap Fund may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Timothy Israel Mon

Risk-Adjusted Performance

Good

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

Pair Trading with Smallcap Fund and Timothy Israel

The main advantage of trading using opposite Smallcap Fund and Timothy Israel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smallcap Fund position performs unexpectedly, Timothy Israel 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 Israel will offset losses from the drop in Timothy Israel's long position.

The idea behind Smallcap Fund Fka and Timothy Israel Mon 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.