Correlation Between Toronto Dominion and Bridgemarq Real
Can any of the company-specific risk be diversified away by investing in both Toronto Dominion and Bridgemarq Real 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 Bridgemarq Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Toronto Dominion Bank and Bridgemarq Real Estate, you can compare the effects of market volatilities on Toronto Dominion and Bridgemarq Real 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 Bridgemarq Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Toronto Dominion and Bridgemarq Real.
Diversification Opportunities for Toronto Dominion and Bridgemarq Real
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Toronto and Bridgemarq is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Toronto Dominion Bank and Bridgemarq Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgemarq Real Estate 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 Toronto Dominion Bank are associated (or correlated) with Bridgemarq Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bridgemarq Real Estate has no effect on the direction of Toronto Dominion i.e., Toronto Dominion and Bridgemarq Real go up and down completely randomly.
Pair Corralation between Toronto Dominion and Bridgemarq Real
Assuming the 90 days horizon Toronto Dominion Bank is expected to generate 0.72 times more return on investment than Bridgemarq Real. However, Toronto Dominion Bank is 1.4 times less risky than Bridgemarq Real. It trades about 0.19 of its potential returns per unit of risk. Bridgemarq Real Estate is currently generating about -0.12 per unit of risk. If you would invest 10,202 in Toronto Dominion Bank on August 14, 2025 and sell it today you would earn a total of 1,233 from holding Toronto Dominion Bank or generate 12.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Toronto Dominion Bank vs. Bridgemarq Real Estate
Performance |
| Timeline |
| Toronto Dominion Bank |
| Bridgemarq Real Estate |
Toronto Dominion and Bridgemarq Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Toronto Dominion and Bridgemarq Real
The main advantage of trading using opposite Toronto Dominion and Bridgemarq Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Toronto Dominion position performs unexpectedly, Bridgemarq Real 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 Bridgemarq Real will offset losses from the drop in Bridgemarq Real's long position.| Toronto Dominion vs. Bank of Montreal | Toronto Dominion vs. Bank of Nova | Toronto Dominion vs. Canadian Imperial Bank | Toronto Dominion vs. Toronto Dominion Bank Pref |
| Bridgemarq Real vs. Invesque | Bridgemarq Real vs. Parkit Enterprise | Bridgemarq Real vs. True North Commercial | Bridgemarq Real vs. Canadian Net Real |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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