Toronto Dominion Correlations

TD Stock

USD 59.53 0.37 0.62%

The current 90-days correlation between Toronto Dominion Bank and Bank of Montreal is 0.4 (i.e., Very weak diversification). The correlation of Toronto Dominion is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Toronto Dominion Correlation With Market

Very weak diversification

The correlation between Toronto Dominion Bank and DJI is 0.47 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Toronto Dominion Bank and DJI in the same portfolio, assuming nothing else is changed.

Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Toronto Dominion Bank. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in unemployment.

Moving together with Toronto Stock

0.88	BML-PG	Bank of America	Pair Corr
0.85	BML-PH	Bank of America	Pair Corr
0.68	BML-PJ	Bank of America	Pair Corr
0.9	BCS	Barclays PLC ADR	Pair Corr
0.71	BMO	Bank of Montreal	Pair Corr
0.71	ING	ING Group NV	Pair Corr
0.65	JPM-PM	JPMorgan Chase	Pair Corr
0.9	JPM-PC	JPMorgan Chase	Pair Corr
0.8	JPM-PD	JPMorgan Chase	Pair Corr
0.67	NTB	Bank of NT	Pair Corr
0.85	SAN	Banco Santander SA	Pair Corr
0.69	UBS	UBS Group AG	Pair Corr
0.86	HSBC	HSBC Holdings PLC	Pair Corr
0.89	BAC-PB	Bank of America	Pair Corr
0.76	BAC-PM	Bank of America	Pair Corr
0.81	BAC-PK	Bank of America	Pair Corr
0.74	BAC-PL	Bank of America	Pair Corr
0.78	MUFG	Mitsubishi UFJ Financial	Pair Corr
0.74	SMFG	Sumitomo Mitsui Financial	Pair Corr
0.88	BBVA	Banco Bilbao Viscaya	Pair Corr
0.77	C-PN	Citigroup Capital XIII	Pair Corr

Moving against Toronto Stock

0.73	BNS	Bank of Nova Scotia	Pair Corr
0.58	CM	Canadian Imperial Bank	Pair Corr
0.39	RY	Royal Bank	Pair Corr
0.72	DHIL	Diamond Hill Investment	Pair Corr
0.53	AX	Axos Financial	Pair Corr
0.52	BX	Blackstone Group	Pair Corr

Related Correlations Analysis

	BMO	CM	BNS	JPM	RY	BAC	C	WFC	NU
BMO		-0.03	-0.2	0.72	0.17	0.33	0.74	0.74	0.44	BMO
CM	-0.03		0.95	0.31	0.94	0.77	0.33	0.25	0.2	CM
BNS	-0.2	0.95		0.08	0.86	0.6	0.09	0.02	0.03	BNS
JPM	0.72	0.31	0.08		0.46	0.75	0.97	0.98	0.79	JPM
RY	0.17	0.94	0.86	0.46		0.81	0.48	0.41	0.33	RY
BAC	0.33	0.77	0.6	0.75	0.81		0.76	0.72	0.61	BAC
C	0.74	0.33	0.09	0.97	0.48	0.76		0.97	0.77	C
WFC	0.74	0.25	0.02	0.98	0.41	0.72	0.97		0.79	WFC
NU	0.44	0.2	0.03	0.79	0.33	0.61	0.77	0.79		NU
	BMO	CM	BNS	JPM	RY	BAC	C	WFC	NU

Click cells to compare fundamentals

Check Volatility

Backtest Portfolio

Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

WFC	+ 0.98	JPM
C	+ 0.97	JPM
WFC	+ 0.97	C
BNS	+ 0.95	CM
RY	+ 0.94	CM
RY	+ 0.86	BNS

High negative correlations

BNS	- 0.2	BMO
CM	- 0.03	BMO

Risk-Adjusted Indicators

There is a big difference between Toronto Stock performing well and Toronto Dominion Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Toronto Dominion's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
BMO	0.75	0.02	0.00	(0.04)	0.00	0.00	1.74	(2.05)	6.84
CM	0.89	(0.17)	0.00	(0.30)	0.00	0.00	1.37	(2.36)	6.74
BNS	0.70	(0.17)	0.00	(0.48)	0.00	0.00	1.44	(1.76)	5.17
JPM	1.10	0.09	0.05	0.02	1.74	(1.04)	1.99	(3.35)	6.85
RY	0.90	(0.06)	0.00	(0.14)	0.00	0.00	1.55	(2.67)	6.21
BAC	1.13	(0.03)	0.00	(0.09)	0.00	0.00	1.81	(2.37)	10.83
C	1.39	0.13	0.05	0.03	2.10	(1.29)	2.45	(3.48)	12.74
WFC	1.24	0.14	0.07	0.05	1.74	(1.38)	2.32	(2.25)	12.70
NU	2.37	0.14	0.02	0.01	4.25	(2.56)	4.58	(4.60)	25.98

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

Feedback Blog

Made with optimal in San Francisco

2024 Macroaxis LLC