Correlation Between Timothy Plan and Rationalpier

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

By analyzing existing cross correlation between Timothy Plan Growth and Rationalpier 88 Convertible, you can compare the effects of market volatilities on Timothy Plan and Rationalpier 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 Timothy Plan with a short position of Rationalpier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Timothy Plan and Rationalpier.

Diversification Opportunities for Timothy Plan and Rationalpier

0.56

Correlation Coefficient

Timothy Plan  Rationalpier

Very weak diversification

The 3 months correlation between Timothy and Rationalpier is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Timothy Plan Growth and Rationalpier 88 Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rationalpier 88 Conv and Timothy Plan 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 Timothy Plan Growth are associated (or correlated) with Rationalpier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rationalpier 88 Conv has no effect on the direction of Timothy Plan i.e., Timothy Plan and Rationalpier go up and down completely randomly.

Pair Corralation between Timothy Plan and Rationalpier

Assuming the 90 days horizon Timothy Plan Growth is expected to under-perform the Rationalpier. But the mutual fund apears to be less risky and, when comparing its historical volatility, Timothy Plan Growth is 1.32 times less risky than Rationalpier. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Rationalpier 88 Convertible is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  1,119  in Rationalpier 88 Convertible on September 12, 2025 and sell it today you would earn a total of  5.00  from holding Rationalpier 88 Convertible or generate 0.45% return on investment over 90 days.

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

Timothy Plan Growth  vs.  Rationalpier 88 Convertible

Timothy Plan Growth

Risk-Adjusted Performance

Weakest

Over the last 90 days Timothy Plan Growth has generated negative risk-adjusted returns adding no value to fund investors. 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.

Rationalpier 88 Conv

Risk-Adjusted Performance

Weakest

Compared to the overall equity markets, risk-adjusted returns on investments in Rationalpier 88 Convertible are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Rationalpier is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Timothy Plan and Rationalpier

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

The idea behind Timothy Plan Growth and Rationalpier 88 Convertible 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.