Correlation Between TD Comfort and TD Index
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By analyzing existing cross correlation between TD Comfort Balanced and TD Index Fund, you can compare the effects of market volatilities on TD Comfort and TD Index 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 TD Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of TD Comfort and TD Index.
Diversification Opportunities for TD Comfort and TD Index
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 0P0001FAU8 and 0P000071W8 is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding TD Comfort Balanced and TD Index Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TD Index Fund 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 Balanced are associated (or correlated) with TD Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TD Index Fund has no effect on the direction of TD Comfort i.e., TD Comfort and TD Index go up and down completely randomly.
Pair Corralation between TD Comfort and TD Index
Assuming the 90 days trading horizon TD Comfort is expected to generate 2.15 times less return on investment than TD Index. But when comparing it to its historical volatility, TD Comfort Balanced is 2.46 times less risky than TD Index. It trades about 0.36 of its potential returns per unit of risk. TD Index Fund is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 14,085 in TD Index Fund on September 2, 2024 and sell it today you would earn a total of 881.00 from holding TD Index Fund or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
TD Comfort Balanced vs. TD Index Fund
Performance |
| Timeline |
| TD Comfort Balanced |
| TD Index Fund |
TD Comfort and TD Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TD Comfort and TD Index
The main advantage of trading using opposite TD Comfort and TD Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TD Comfort position performs unexpectedly, TD Index 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 TD Index will offset losses from the drop in TD Index's long position.| TD Comfort vs. BMO Aggregate Bond | TD Comfort vs. iShares Canadian HYBrid | TD Comfort vs. Brompton European Dividend | TD Comfort vs. Solar Alliance Energy |
| TD Index vs. BMO Aggregate Bond | TD Index vs. iShares Canadian HYBrid | TD Index vs. Brompton European Dividend | TD Index vs. Solar Alliance Energy |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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