In time O(n) you can use O(n) cells on a tape, but there are O(2^n) possible configurations of symbols on a tape of length n (for an alphabet with 2 symbols), so you can do so much more with n space than with n time.
If intermediate results are entirely uncorrelated, with no overlap in the work at all, that would not hold - space will not help you. Edit: This kind of problem is very rare. Think of a cache with 0 percent hit rate - almost never happens.
And you can't really do it the other way around (at least not in current computing terms / concepts): you cannot use a single unit of time as a standin / proxy for hundreds of cells, since we don't quite have infinitely-broad SIMD architectures.