Toronto Stock Volatility

TD
 Stock
  

USD 68.93  1.41  2.09%   

Toronto Dominion Bank owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0262, which indicates the firm had -0.0262% of return per unit of risk over the last 3 months. Macroaxis standpoint towards measuring the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Toronto Dominion Bank exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to validate Toronto Dominion coefficient of variation of (2,906), and Risk Adjusted Performance of (0.040834) to confirm the risk estimate we provide.
  
Toronto Dominion Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Toronto daily returns, and it is calculated using variance and standard deviation. We also use Toronto's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Toronto Dominion volatility.

720 Days Market Risk

Very steady

Chance of Distress

Close to Average

720 Days Economic Sensitivity

Follows the market closely

ESG Sustainability

While most ESG disclosures are voluntary, Toronto Dominion's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Toronto Dominion's managers and investors.
Environment Score
Governance Score
Social Score
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Toronto Dominion can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Toronto Dominion at lower prices. For example, an investor can purchase Toronto stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Toronto Dominion's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

Moving together with Toronto Dominion

0.89JPMJP Morgan Chase Fiscal Year End 13th of January 2023 PairCorr
0.79BACBank Of AmericaPairCorr
0.66IDCBFIndustrial CommerPairCorr

Moving against Toronto Dominion

0.52UNHUnitedhealth GroupPairCorr

Toronto Dominion Market Sensitivity And Downside Risk

Toronto Dominion's beta coefficient measures the volatility of Toronto stock compared to the systematic risk of the entire stock market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Toronto stock's returns against your selected market. In other words, Toronto Dominion's beta of 0.9 provides an investor with an approximation of how much risk Toronto Dominion stock can potentially add to one of your existing portfolios.
Toronto Dominion Bank exhibits very low volatility with skewness of -0.24 and kurtosis of -0.02. However, we advise investors to further study Toronto Dominion Bank technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Toronto Dominion's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Toronto Dominion's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Toronto Dominion Implied Volatility

Toronto Dominion's implied volatility exposes the market's sentiment of Toronto Dominion Bank stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Toronto Dominion's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Toronto Dominion stock will not fluctuate a lot when Toronto Dominion's options are near their expiration.
3 Months Beta |Analyze Toronto Dominion Bank Demand Trend
Check current 90 days Toronto Dominion correlation with market (DOW)

Toronto Beta

    
  0.9  
Toronto standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  1.57  
It is essential to understand the difference between upside risk (as represented by Toronto Dominion's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Toronto Dominion's daily returns or price. Since the actual investment returns on holding a position in toronto stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Toronto Dominion.

Using Toronto Put Option to Manage Risk

Put options written on Toronto Dominion grant holders of the option the right to sell a specified amount of Toronto Dominion at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Toronto Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Toronto Dominion's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Toronto Dominion will be realized, the loss incurred will be offset by the profits made with the option trade.

Toronto Dominion's PUT expiring on 2022-08-19

   Profit   
Share
       Toronto Dominion Price At Expiration  

Current Toronto Dominion Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2022-08-19 PUT at $70.0-0.98020.039912022-08-192.3 - 2.74.19View
Put
2022-08-19 PUT at $67.5-0.49340.2747512022-08-190.5 - 0.650.58View
Put
2022-08-19 PUT at $65.0-0.1020.08742632022-08-190.0 - 0.20.1View
Put
2022-08-19 PUT at $55.0-0.00550.00291842022-08-190.0 - 0.10.01View
View All Toronto Dominion Options

Toronto Dominion Bank Stock Volatility Analysis

Volatility refers to the frequency at which Toronto Dominion stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Toronto Dominion's price changes. Investors will then calculate the volatility of Toronto Dominion's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Toronto Dominion's volatility:

Historical Volatility

This type of stock volatility measures Toronto Dominion's fluctuations based on previous trends. It's commonly used to predict Toronto Dominion's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Toronto Dominion's current market price. This means that the stock will return to its initially predicted market price.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Toronto Dominion Bank Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
.

Toronto Dominion Projected Return Density Against Market

Allowing for the 90-day total investment horizon Toronto Dominion has a beta of 0.8986 . This usually implies Toronto Dominion Bank market returns are highly-sensitive to returns on the market. As the market goes up or down, Toronto Dominion is expected to follow.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Toronto Dominion or Financial Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Toronto Dominion's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Toronto stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
The company has a negative alpha, implying that the risk taken by holding this instrument is not justified. Toronto Dominion Bank is significantly underperforming DOW.
   Predicted Return Density   
       Returns  
Toronto Dominion's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how toronto stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Toronto Dominion Price Volatility?

Several factors can influence a Stock's stock volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Toronto Dominion Stock Risk Measures

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Toronto Dominion or Financial Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Toronto Dominion's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Toronto stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Allowing for the 90-day total investment horizon the coefficient of variation of Toronto Dominion is -3820.03. The daily returns are distributed with a variance of 2.45 and standard deviation of 1.57. The mean deviation of Toronto Dominion Bank is currently at 1.22. For similar time horizon, the selected benchmark (DOW) has volatility of 1.25
α
Alpha over DOW
-0.15
β
Beta against DOW0.90
σ
Overall volatility
1.57
Ir
Information ratio -0.1

Toronto Dominion Stock Return Volatility

Toronto Dominion historical daily return volatility represents how much of Toronto Dominion stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm accepts 1.5662% volatility on return distribution over the 90 days horizon. By contrast, DOW inherits 1.1714% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About Toronto Dominion Volatility

Volatility is a rate at which the price of Toronto Dominion or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Toronto Dominion may increase or decrease. In other words, similar to Toronto's beta indicator, it measures the risk of Toronto Dominion and helps estimate the fluctuations that may happen in a short period of time. So if prices of Toronto Dominion fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
The Toronto-Dominion Bank, together with its subsidiaries, provides various financial products and services in Canada, the United States, and internationally. The Toronto-Dominion Bank was founded in 1855 and is headquartered in Toronto, Canada. Toronto Dominion operates under BanksDiversified classification in the United States and is traded on New York Stock Exchange. It employs 91993 people.

Toronto Dominion Investment Opportunity

Toronto Dominion Bank has a volatility of 1.57 and is 1.34 times more volatile than DOW. 13  of all equities and portfolios are less risky than Toronto Dominion. Compared to the overall equity markets, volatility of historical daily returns of Toronto Dominion Bank is lower than 13 () of all global equities and portfolios over the last 90 days.
Use Toronto Dominion Bank to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Toronto Dominion to be traded at $82.72 in 90 days. .

Poor diversification

The correlation between Toronto Dominion Bank and DJI is Poor diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Toronto Dominion Bank and DJI in the same portfolio, assuming nothing else is changed.

Toronto Dominion Additional Risk Indicators

The analysis of Toronto Dominion's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Toronto Dominion's investment and either accepting that risk or mitigating it. Along with some common measures of Toronto Dominion stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Risk Adjusted Performance(0.040834)
Market Risk Adjusted Performance(0.06)
Mean Deviation1.23
Coefficient Of Variation(2,906)
Standard Deviation1.56
Variance2.43
Information Ratio(0.10)
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Toronto Dominion Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
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The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Toronto Dominion as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Toronto Dominion's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Toronto Dominion's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Toronto Dominion Bank.
Additionally, take a look at World Market Map. Note that the Toronto Dominion Bank information on this page should be used as a complementary analysis to other Toronto Dominion's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Money Managers module to screen money managers from public funds and ETFs managed around the world.

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Is Toronto Dominion's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Toronto Dominion. If investors know Toronto will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Toronto Dominion listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.04
Market Capitalization
123 B
Quarterly Revenue Growth YOY
0.038
Return On Assets
0.0085
Return On Equity
0.15
The market value of Toronto Dominion Bank is measured differently than its book value, which is the value of Toronto that is recorded on the company's balance sheet. Investors also form their own opinion of Toronto Dominion's value that differs from its market value or its book value, called intrinsic value, which is Toronto Dominion's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Toronto Dominion's market value can be influenced by many factors that don't directly affect Toronto Dominion's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Toronto Dominion's value and its price as these two are different measures arrived at by different means. Investors typically determine Toronto Dominion value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Toronto Dominion's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.