Toronto Story

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TD -- USA Stock  

USD 65.68  0.56  0.85%

Toronto Dominion is generating 0.2145% of daily returns and assumes 1.0765% volatility on return distribution over the 90 days horizon. As many adventurous traders are excited about financial services space, it is only fair to digest the risk of shorting Toronto Dominion Bank based on its current volatility spike. We will discuss how risky is to take a position in Toronto Dominion at this time. Toronto Dominion's very low volatility may have no significant impact on the stock's value as we estimate Toronto Dominion as currently fairly valued. The real value, based on our calculations, is getting close to 61.32 per share.
Published over a month ago
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Will Toronto Dominion (NYSE:TD) low risk outlook last untill March?
The company is active under Financial Services sector as part of Banks?Diversified industry.
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.

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.

Is Toronto Dominion valued correctly by the market?

The latest bullish price patterns experienced by current Toronto Dominion shareholders created some momentum for shareholders as it was traded today as low as 61.4 and as high as 63.58 per share. The company management teams have been very successful in rebalancing the company assets at opportune times to take advantage of market volatility in January. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.08. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.

Will Toronto shareholders exit after the dip?

Toronto Dominion latest kurtosis ascents over 0.54. Toronto Dominion Bank has low volatility with Treynor Ratio of 0.29, Maximum Drawdown of 4.98 and kurtosis of 0.54. However, we advice all investors to further analyze Toronto Dominion Bank to make certain all market information is desiminated and is consistent with the current expectations about Toronto Dominion upside potential. 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.

Although some other firms under the banks?diversified industry are still a bit expensive, Toronto Dominion may offer a potential longer-term growth to shareholders. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to exit some or all of your Toronto Dominion holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Toronto Dominion.

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 Achuva Shats 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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