Correlation Between Timothy Plan and Multi-manager High

Can any of the company-specific risk be diversified away by investing in both Timothy Plan and Multi-manager High 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 Multi-manager High 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 Multi Manager High Yield, you can compare the effects of market volatilities on Timothy Plan and Multi-manager High 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 Multi-manager High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Timothy Plan and Multi-manager High.

Diversification Opportunities for Timothy Plan and Multi-manager High

0.98

Correlation Coefficient

Timothy Plan  Multi-manager High

Almost no diversification

The 3 months correlation between Timothy and Multi-manager is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Timothy Plan High and Multi Manager High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Manager High 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 Multi-manager High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Manager High has no effect on the direction of Timothy Plan i.e., Timothy Plan and Multi-manager High go up and down completely randomly.

Pair Corralation between Timothy Plan and Multi-manager High

Assuming the 90 days horizon Timothy Plan is expected to generate 1.03 times less return on investment than Multi-manager High. But when comparing it to its historical volatility, Timothy Plan High is 1.01 times less risky than Multi-manager High. It trades about 0.32 of its potential returns per unit of risk. Multi Manager High Yield is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest  825.00  in Multi Manager High Yield on May 11, 2025 and sell it today you would earn a total of  24.00  from holding Multi Manager High Yield or generate 2.91% 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.  Multi Manager High Yield

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 25 (%) 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.

Multi Manager High

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Multi Manager High Yield are ranked lower than 25 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Multi-manager High 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 Multi-manager High

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

The idea behind Timothy Plan High and Multi Manager High Yield 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.