Correlation Between IA Clarington and TD Dividend
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By analyzing existing cross correlation between IA Clarington Strategic and TD Dividend Growth, you can compare the effects of market volatilities on IA Clarington and TD Dividend 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 IA Clarington with a short position of TD Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of IA Clarington and TD Dividend.
Diversification Opportunities for IA Clarington and TD Dividend
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ISCB and 0P00016N6E is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding IA Clarington Strategic and TD Dividend Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TD Dividend Growth and IA Clarington 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 IA Clarington Strategic are associated (or correlated) with TD Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TD Dividend Growth has no effect on the direction of IA Clarington i.e., IA Clarington and TD Dividend go up and down completely randomly.
Pair Corralation between IA Clarington and TD Dividend
Assuming the 90 days trading horizon IA Clarington Strategic is expected to under-perform the TD Dividend. But the fund apears to be less risky and, when comparing its historical volatility, IA Clarington Strategic is 5.04 times less risky than TD Dividend. The fund trades about -0.25 of its potential returns per unit of risk. The TD Dividend Growth is currently generating about 0.54 of returns per unit of risk over similar time horizon. If you would invest 1,825 in TD Dividend Growth on September 2, 2024 and sell it today you would earn a total of 98.00 from holding TD Dividend Growth or generate 5.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 76.19% |
| Values | Daily Returns |
IA Clarington Strategic vs. TD Dividend Growth
Performance |
| Timeline |
| IA Clarington Strategic |
| TD Dividend Growth |
IA Clarington and TD Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IA Clarington and TD Dividend
The main advantage of trading using opposite IA Clarington and TD Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IA Clarington position performs unexpectedly, TD Dividend 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 Dividend will offset losses from the drop in TD Dividend's long position.| IA Clarington vs. Fidelity Tactical High | IA Clarington vs. Global Healthcare Income | IA Clarington vs. CI Global Alpha | IA Clarington vs. CI Global Alpha |
| TD Dividend vs. Fidelity Tactical High | TD Dividend vs. Global Healthcare Income | TD Dividend vs. CI Global Alpha | TD Dividend vs. CI Global Alpha |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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