Correlation Between Toronto Dominion and Wheeler Real
Can any of the company-specific risk be diversified away by investing in both Toronto Dominion and Wheeler 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 Wheeler 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 Wheeler Real Estate, you can compare the effects of market volatilities on Toronto Dominion and Wheeler 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 Wheeler Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Toronto Dominion and Wheeler Real.
Diversification Opportunities for Toronto Dominion and Wheeler Real
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Toronto and Wheeler is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Toronto Dominion Bank and Wheeler Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wheeler 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 Wheeler Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wheeler Real Estate has no effect on the direction of Toronto Dominion i.e., Toronto Dominion and Wheeler Real go up and down completely randomly.
Pair Corralation between Toronto Dominion and Wheeler Real
Allowing for the 90-day total investment horizon Toronto Dominion Bank is expected to generate 0.16 times more return on investment than Wheeler Real. However, Toronto Dominion Bank is 6.38 times less risky than Wheeler Real. It trades about 0.28 of its potential returns per unit of risk. Wheeler Real Estate is currently generating about -0.09 per unit of risk. If you would invest 7,609 in Toronto Dominion Bank on September 11, 2025 and sell it today you would earn a total of 1,305 from holding Toronto Dominion Bank or generate 17.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 93.75% |
| Values | Daily Returns |
Toronto Dominion Bank vs. Wheeler Real Estate
Performance |
| Timeline |
| Toronto Dominion Bank |
| Wheeler Real Estate |
Toronto Dominion and Wheeler Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Toronto Dominion and Wheeler Real
The main advantage of trading using opposite Toronto Dominion and Wheeler Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Toronto Dominion position performs unexpectedly, Wheeler 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 Wheeler Real will offset losses from the drop in Wheeler Real's long position.| Toronto Dominion vs. Bank of Montreal | Toronto Dominion vs. Canadian Imperial Bank | Toronto Dominion vs. Bank of Nova | Toronto Dominion vs. JPMorgan Chase Co |
| Wheeler Real vs. Safe and Green | Wheeler Real vs. Power REIT | Wheeler Real vs. Ucommune International | Wheeler Real vs. MDJM |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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