Correlation Between Toronto-Dominion and Marie Brizard

Can any of the company-specific risk be diversified away by investing in both Toronto-Dominion and Marie Brizard 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 Toronto-Dominion and Marie Brizard into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between The Toronto Dominion Bank and Marie Brizard Wine, you can compare the effects of market volatilities on Toronto-Dominion and Marie Brizard 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 Toronto-Dominion with a short position of Marie Brizard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Toronto-Dominion and Marie Brizard.

Diversification Opportunities for Toronto-Dominion and Marie Brizard

-0.54

Correlation Coefficient

Toronto-Dominion  Marie Brizard

Excellent diversification

The 3 months correlation between Toronto-Dominion and Marie is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding The Toronto Dominion Bank and Marie Brizard Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marie Brizard Wine and Toronto-Dominion 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 The Toronto Dominion Bank are associated (or correlated) with Marie Brizard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marie Brizard Wine has no effect on the direction of Toronto-Dominion i.e., Toronto-Dominion and Marie Brizard go up and down completely randomly.

Pair Corralation between Toronto-Dominion and Marie Brizard

Assuming the 90 days horizon The Toronto Dominion Bank is expected to generate 0.65 times more return on investment than Marie Brizard. However, The Toronto Dominion Bank is 1.53 times less risky than Marie Brizard. It trades about 0.31 of its potential returns per unit of risk. Marie Brizard Wine is currently generating about -0.06 per unit of risk. If you would invest  5,422  in The Toronto Dominion Bank on April 25, 2025 and sell it today you would earn a total of  959.00  from holding The Toronto Dominion Bank or generate 17.69% return on investment over 90 days.

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

The Toronto Dominion Bank  vs.  Marie Brizard Wine

Toronto Dominion

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in The Toronto Dominion Bank are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Toronto-Dominion reported solid returns over the last few months and may actually be approaching a breakup point.

Marie Brizard Wine

Risk-Adjusted Performance

Very Weak

Over the last 90 days Marie Brizard Wine has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Marie Brizard is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Toronto-Dominion and Marie Brizard

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

The idea behind The Toronto Dominion Bank and Marie Brizard Wine 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.