Correlation Between Mackenzie Growth and TD One

Can any of the company-specific risk be diversified away by investing in both Mackenzie Growth 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 Mackenzie Growth and TD One into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Mackenzie Growth and TD One

0.99

Correlation Coefficient

Mackenzie Growth  TD One

No risk reduction

The 3 months correlation between Mackenzie and TOCA is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Mackenzie Growth Allocation 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 Mackenzie Growth 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 Mackenzie Growth Allocation 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 Mackenzie Growth i.e., Mackenzie Growth and TD One go up and down completely randomly.

Pair Corralation between Mackenzie Growth and TD One

Assuming the 90 days trading horizon Mackenzie Growth is expected to generate 1.05 times less return on investment than TD One. In addition to that, Mackenzie Growth is 1.02 times more volatile than TD One Click Aggressive. It trades about 0.37 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 20, 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 Together
Strength	Very Strong
Accuracy	98.44%
Values	Daily Returns

Mackenzie Growth Allocation  vs.  TD One Click Aggressive

Mackenzie Growth All

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Mackenzie Growth Allocation are ranked lower than 29 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Mackenzie Growth displayed solid returns over the last few months and may actually be approaching a breakup point.

TD One Click

Risk-Adjusted Performance

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 Mackenzie Growth and TD One

The main advantage of trading using opposite Mackenzie Growth and TD One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mackenzie Growth 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 Mackenzie Growth Allocation 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.