Correlation Between Angel Oak and Timothy Plan
Can any of the company-specific risk be diversified away by investing in both Angel Oak 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 Angel Oak and Timothy Plan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angel Oak UltraShort and Timothy Plan Market, you can compare the effects of market volatilities on Angel Oak 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 Angel Oak with a short position of Timothy Plan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Timothy Plan.
Diversification Opportunities for Angel Oak and Timothy Plan
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Angel and Timothy is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak UltraShort and Timothy Plan Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timothy Plan Market and Angel Oak 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 Angel Oak UltraShort 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 Market has no effect on the direction of Angel Oak i.e., Angel Oak and Timothy Plan go up and down completely randomly.
Pair Corralation between Angel Oak and Timothy Plan
Given the investment horizon of 90 days Angel Oak is expected to generate 1.36 times less return on investment than Timothy Plan. But when comparing it to its historical volatility, Angel Oak UltraShort is 12.02 times less risky than Timothy Plan. It trades about 1.05 of its potential returns per unit of risk. Timothy Plan Market is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,332 in Timothy Plan Market on December 5, 2024 and sell it today you would earn a total of 19.00 from holding Timothy Plan Market or generate 0.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Angel Oak UltraShort vs. Timothy Plan Market
Performance |
Timeline |
Angel Oak UltraShort |
Timothy Plan Market |
Angel Oak and Timothy Plan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Angel Oak and Timothy Plan
The main advantage of trading using opposite Angel Oak and Timothy Plan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak 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.Angel Oak vs. T Rowe Price | Angel Oak vs. T Rowe Price | Angel Oak vs. Ab Tax Aware Short | Angel Oak vs. BondBloxx ETF Trust |
Timothy Plan vs. Timothy Plan Small | Timothy Plan vs. Timothy Plan LargeMid | Timothy Plan vs. Timothy Plan | Timothy Plan vs. Angel Oak UltraShort |
Check out your portfolio center.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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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