Correlation Between TD One and Mackenzie Growth

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

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

Diversification Opportunities for TD One and Mackenzie Growth

0.57

Correlation Coefficient

TD One  Mackenzie Growth

Very weak diversification

The 3 months correlation between TOCA and Mackenzie is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding TD One Click Aggressive and Mackenzie Growth Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackenzie Growth All and TD One 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 TD One Click Aggressive are associated (or correlated) with Mackenzie Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mackenzie Growth All has no effect on the direction of TD One i.e., TD One and Mackenzie Growth go up and down completely randomly.

Pair Corralation between TD One and Mackenzie Growth

Assuming the 90 days trading horizon TD One Click Aggressive is expected to generate 1.01 times more return on investment than Mackenzie Growth. However, TD One is 1.01 times more volatile than Mackenzie Growth Allocation. It trades about 0.34 of its potential returns per unit of risk. Mackenzie Growth Allocation is currently generating about 0.32 per unit of risk. If you would invest  2,187  in TD One Click Aggressive on April 23, 2025 and sell it today you would earn a total of  240.00  from holding TD One Click Aggressive or generate 10.97% return on investment over 90 days.

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

TD One Click Aggressive  vs.  Mackenzie Growth Allocation

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 26 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, TD One may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Mackenzie Growth All

Risk-Adjusted Performance

Solid

Over the last 90 days Mackenzie Growth Allocation has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very weak basic indicators, Mackenzie Growth may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with TD One and Mackenzie Growth

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

The idea behind TD One Click Aggressive and Mackenzie Growth Allocation 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.