Correlation Between SPTSX Dividend and Toronto Dominion
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Toronto Dominion Bank Pref, you can compare the effects of market volatilities on SPTSX Dividend and Toronto Dominion 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 SPTSX Dividend with a short position of Toronto Dominion. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Toronto Dominion.
Diversification Opportunities for SPTSX Dividend and Toronto Dominion
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPTSX and Toronto is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Toronto Dominion Bank Pref in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Toronto Dominion Bank and SPTSX Dividend 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 SPTSX Dividend Aristocrats are associated (or correlated) with Toronto Dominion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Toronto Dominion Bank has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Toronto Dominion go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Toronto Dominion
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to generate 1.3 times more return on investment than Toronto Dominion. However, SPTSX Dividend is 1.3 times more volatile than Toronto Dominion Bank Pref. It trades about 0.2 of its potential returns per unit of risk. Toronto Dominion Bank Pref is currently generating about -0.01 per unit of risk. If you would invest 36,690 in SPTSX Dividend Aristocrats on August 31, 2024 and sell it today you would earn a total of 755.00 from holding SPTSX Dividend Aristocrats or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Toronto Dominion Bank Pref
Performance |
| Timeline |
SPTSX Dividend and Toronto Dominion Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Toronto Dominion Bank Pref
Pair trading matchups for Toronto Dominion
Pair Trading with SPTSX Dividend and Toronto Dominion
The main advantage of trading using opposite SPTSX Dividend and Toronto Dominion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Toronto Dominion 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 Toronto Dominion will offset losses from the drop in Toronto Dominion's long position.| SPTSX Dividend vs. Canadian Imperial Bank | SPTSX Dividend vs. Renoworks Software | SPTSX Dividend vs. CI Financial Corp | SPTSX Dividend vs. CVW CleanTech |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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