Correlation Between Timothy Plan and Ab Tax-managed

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

By analyzing existing cross correlation between Timothy Plan High and Ab Tax Managed Wealth, you can compare the effects of market volatilities on Timothy Plan and Ab Tax-managed 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 Ab Tax-managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Timothy Plan and Ab Tax-managed.

Diversification Opportunities for Timothy Plan and Ab Tax-managed

0.94

Correlation Coefficient

Timothy Plan  Ab Tax-managed

Almost no diversification

The 3 months correlation between Timothy and ATWCX is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Timothy Plan High and Ab Tax Managed Wealth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Tax Managed 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 High are associated (or correlated) with Ab Tax-managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Tax Managed has no effect on the direction of Timothy Plan i.e., Timothy Plan and Ab Tax-managed go up and down completely randomly.

Pair Corralation between Timothy Plan and Ab Tax-managed

Assuming the 90 days horizon Timothy Plan is expected to generate 3.79 times less return on investment than Ab Tax-managed. But when comparing it to its historical volatility, Timothy Plan High is 5.01 times less risky than Ab Tax-managed. It trades about 0.25 of its potential returns per unit of risk. Ab Tax Managed Wealth is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  2,434  in Ab Tax Managed Wealth on July 9, 2025 and sell it today you would earn a total of  167.00  from holding Ab Tax Managed Wealth or generate 6.86% return on investment over 90 days.

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

Timothy Plan High  vs.  Ab Tax Managed Wealth

Timothy Plan High

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Timothy Plan High are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Timothy Plan is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ab Tax Managed

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ab Tax Managed Wealth are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Ab Tax-managed may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Timothy Plan and Ab Tax-managed

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

The idea behind Timothy Plan High and Ab Tax Managed Wealth 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..