Correlation Between Vanguard Health and Timothy Plan

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

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

Diversification Opportunities for Vanguard Health and Timothy Plan

0.6

Correlation Coefficient

Vanguard Health  Timothy Plan

Poor diversification

The 3 months correlation between Vanguard and Timothy is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Health Care and Timothy Plan Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timothy Plan Growth and Vanguard Health 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 Vanguard Health Care 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 Growth has no effect on the direction of Vanguard Health i.e., Vanguard Health and Timothy Plan go up and down completely randomly.

Pair Corralation between Vanguard Health and Timothy Plan

Assuming the 90 days horizon Vanguard Health Care is expected to generate 2.57 times more return on investment than Timothy Plan. However, Vanguard Health is 2.57 times more volatile than Timothy Plan Growth. It trades about 0.15 of its potential returns per unit of risk. Timothy Plan Growth is currently generating about 0.03 per unit of risk. If you would invest  17,553  in Vanguard Health Care on July 23, 2025 and sell it today you would earn a total of  1,642  from holding Vanguard Health Care or generate 9.35% return on investment over 90 days.

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

Vanguard Health Care  vs.  Timothy Plan Growth

Vanguard Health Care

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard Health Care are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Vanguard Health may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Timothy Plan Growth

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Timothy Plan Growth are ranked lower than 2 (%) 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 Vanguard Health and Timothy Plan

The main advantage of trading using opposite Vanguard Health and Timothy Plan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Health 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 Vanguard Health Care and Timothy Plan Growth 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.