Correlation Between Tuttle Capital and Timothy Plan

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

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

Diversification Opportunities for Tuttle Capital and Timothy Plan

0.0

Correlation Coefficient

Tuttle Capital  Timothy Plan

Pay attention - limited upside

The 3 months correlation between Tuttle and Timothy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tuttle Capital Management and Timothy Plan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timothy Plan and Tuttle Capital 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 Tuttle Capital Management 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 has no effect on the direction of Tuttle Capital i.e., Tuttle Capital and Timothy Plan go up and down completely randomly.

Pair Corralation between Tuttle Capital and Timothy Plan

Given the investment horizon of 90 days Tuttle Capital Management is expected to generate 1.11 times more return on investment than Timothy Plan. However, Tuttle Capital is 1.11 times more volatile than Timothy Plan . It trades about 0.12 of its potential returns per unit of risk. Timothy Plan is currently generating about 0.03 per unit of risk. If you would invest  2,219  in Tuttle Capital Management on October 7, 2024 and sell it today you would earn a total of  308.00  from holding Tuttle Capital Management or generate 13.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	26.41%
Values	Daily Returns

Tuttle Capital Management  vs.  Timothy Plan

Tuttle Capital Management

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tuttle Capital Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Tuttle Capital is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Timothy Plan

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Timothy Plan has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, Timothy Plan is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Tuttle Capital and Timothy Plan

The main advantage of trading using opposite Tuttle Capital and Timothy Plan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tuttle Capital 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 Tuttle Capital Management and Timothy Plan 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.