Correlation Between TD Comfort and Mawer Equity
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By analyzing existing cross correlation between TD Comfort Aggressive and Mawer Equity A, you can compare the effects of market volatilities on TD Comfort and Mawer Equity 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 TD Comfort with a short position of Mawer Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of TD Comfort and Mawer Equity.
Diversification Opportunities for TD Comfort and Mawer Equity
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 0P0001FAU5 and Mawer is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding TD Comfort Aggressive and Mawer Equity A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mawer Equity A and TD Comfort 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 TD Comfort Aggressive are associated (or correlated) with Mawer Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mawer Equity A has no effect on the direction of TD Comfort i.e., TD Comfort and Mawer Equity go up and down completely randomly.
Pair Corralation between TD Comfort and Mawer Equity
Assuming the 90 days trading horizon TD Comfort Aggressive is expected to generate 0.82 times more return on investment than Mawer Equity. However, TD Comfort Aggressive is 1.23 times less risky than Mawer Equity. It trades about 0.14 of its potential returns per unit of risk. Mawer Equity A is currently generating about 0.11 per unit of risk. If you would invest 1,264 in TD Comfort Aggressive on September 12, 2024 and sell it today you would earn a total of 527.00 from holding TD Comfort Aggressive or generate 41.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.21% |
| Values | Daily Returns |
TD Comfort Aggressive vs. Mawer Equity A
Performance |
| Timeline |
| TD Comfort Aggressive |
| Mawer Equity A |
TD Comfort and Mawer Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TD Comfort and Mawer Equity
The main advantage of trading using opposite TD Comfort and Mawer Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TD Comfort position performs unexpectedly, Mawer Equity 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 Mawer Equity will offset losses from the drop in Mawer Equity's long position.| TD Comfort vs. Edgepoint Global Portfolio | TD Comfort vs. RBC Global Equity | TD Comfort vs. Invesco Global Companies |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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