Correlation Between Timothy Israel and Timothy Aggressive

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

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

Diversification Opportunities for Timothy Israel and Timothy Aggressive

0.81

Correlation Coefficient

Timothy Israel  Timothy Aggressive

Very poor diversification

The 3 months correlation between Timothy and Timothy is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Timothy Israel Mon and Timothy Aggressive Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timothy Aggressive Growth and Timothy Israel 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 Israel Mon are associated (or correlated) with Timothy Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timothy Aggressive Growth has no effect on the direction of Timothy Israel i.e., Timothy Israel and Timothy Aggressive go up and down completely randomly.

Pair Corralation between Timothy Israel and Timothy Aggressive

Assuming the 90 days horizon Timothy Israel Mon is expected to generate 1.2 times more return on investment than Timothy Aggressive. However, Timothy Israel is 1.2 times more volatile than Timothy Aggressive Growth. It trades about 0.19 of its potential returns per unit of risk. Timothy Aggressive Growth is currently generating about 0.21 per unit of risk. If you would invest  2,140  in Timothy Israel Mon on September 2, 2024 and sell it today you would earn a total of  298.00  from holding Timothy Israel Mon or generate 13.93% return on investment over 90 days.

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

Timothy Israel Mon  vs.  Timothy Aggressive Growth

Timothy Israel Mon

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Timothy Israel Mon are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Timothy Israel showed solid returns over the last few months and may actually be approaching a breakup point.

Timothy Aggressive Growth

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Timothy Aggressive Growth are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Timothy Aggressive may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Timothy Israel and Timothy Aggressive

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

The idea behind Timothy Israel Mon and Timothy Aggressive 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .