Toronto Story

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TD -- USA Stock  

USD 47.51  0.02  0.0421%

It looks as if Toronto Dominion will continue to recover much faster as its share price surged up 0.20% today. The entity's current daily volatility is 1.75 percent, with a beta of 0.23 and an alpha of 0.34 over DOW. While some of us are getting more passionate about overall trading value increase, it makes sense to digest Toronto Dominion Bank in greater detail to make a better estimate of its volatility. Why are we still confident in our projection for a recovery.
Published over two weeks ago
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Should you take up Toronto Dominion Bank after the latest volatility surge?
Toronto Dominion Bank is active under Financial Services sector as part of Banks?Diversified industry. Our trade recommendation tool can be used to complement Toronto Dominion Bank advice provided by experts. It analyzes the firm's potential to grow against your specific risk preferences and investment horizon.
Investing in Toronto Dominion, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Toronto Dominion along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.

How important is Toronto Dominion's Liquidity

Toronto Dominion financial leverage refers to using borrowed capital as a funding source to finance Toronto Dominion Bank ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Toronto Dominion financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Toronto Dominion's total debt and its cash.

How Toronto utilizes its cash?

To perform a cash flow analysis of Toronto Dominion, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Toronto Dominion is receiving and how much cash it distributes out in a given period. The Toronto Dominion cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Toronto Dominion Correlation with Peers

Investors in Toronto can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Toronto Dominion Bank. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Toronto Dominion and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Toronto is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Toronto for more details

Breaking it down a bit more

Toronto Dominion appears to be very steady, given 1 month investment horizon. Toronto Dominion Bank owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.16, which indicates the firm had 0.16% of return per unit of risk over the last month. Our standpoint towards measuring the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Toronto Dominion Bank, which you can use to evaluate future volatility of the company. Please operate Toronto Dominion Semi Deviation of 1.59, coefficient of variation of 564.22, and Risk Adjusted Performance of 0.2569 to confirm if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will Toronto continue to surge?

Latest expected short fall is at -1.87. Toronto Dominion Bank has relatively low volatility with skewness of 0.65 and kurtosis of 4.15. However, we advise all investors to independently investigate Toronto Dominion Bank to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Although other companies under the banks?diversified industry are still a bit expensive, Toronto Dominion may offer a potential longer-term growth to shareholders. To conclude, as of the 27th of August 2020, we see that Toronto Dominion slowly supersedes the market. The firm is undervalued with below average odds of distress within the next 24 months. Our final 30 days buy-or-sell advice on the firm is Strong Buy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Toronto Dominion Bank. Please refer to our Terms of Use for any information regarding our disclosure principles.

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