Correlation Between BetaPro SPTSX and TD One

Can any of the company-specific risk be diversified away by investing in both BetaPro SPTSX and TD One at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining BetaPro SPTSX and TD One into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BetaPro SPTSX 60 and TD One Click Aggressive, you can compare the effects of market volatilities on BetaPro SPTSX and TD One 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 BetaPro SPTSX with a short position of TD One. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro SPTSX and TD One.

Diversification Opportunities for BetaPro SPTSX and TD One

-0.99

Correlation Coefficient

BetaPro SPTSX  TD One

Pay attention - limited upside

The 3 months correlation between BetaPro and TOCA is -0.99. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro SPTSX 60 and TD One Click Aggressive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TD One Click and BetaPro SPTSX 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 BetaPro SPTSX 60 are associated (or correlated) with TD One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TD One Click has no effect on the direction of BetaPro SPTSX i.e., BetaPro SPTSX and TD One go up and down completely randomly.

Pair Corralation between BetaPro SPTSX and TD One

Assuming the 90 days trading horizon BetaPro SPTSX 60 is expected to under-perform the TD One. In addition to that, BetaPro SPTSX is 1.73 times more volatile than TD One Click Aggressive. It trades about -0.43 of its total potential returns per unit of risk. TD One Click Aggressive is currently generating about 0.4 per unit of volatility. If you would invest  2,127  in TD One Click Aggressive on April 21, 2025 and sell it today you would earn a total of  305.00  from holding TD One Click Aggressive or generate 14.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

BetaPro SPTSX 60  vs.  TD One Click Aggressive

BetaPro SPTSX 60

Risk-Adjusted Performance

Very Weak

Over the last 90 days BetaPro SPTSX 60 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Etf's fundamental indicators remain very healthy which may send shares a bit higher in August 2025. The recent disarray may also be a sign of long period up-swing for the ETF investors.

TD One Click

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in TD One Click Aggressive are ranked lower than 31 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, TD One displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BetaPro SPTSX and TD One

The main advantage of trading using opposite BetaPro SPTSX and TD One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro SPTSX position performs unexpectedly, TD One 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 One will offset losses from the drop in TD One's long position.

The idea behind BetaPro SPTSX 60 and TD One Click Aggressive pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.