Toronto Dominion Stock Forecast - Simple Exponential Smoothing

TD Stock  CAD 76.22  0.61  0.81%   
The Simple Exponential Smoothing forecasted value of Toronto Dominion Bank on the next trading day is expected to be 76.22 with a mean absolute deviation of 0.67 and the sum of the absolute errors of 40.76. Toronto Stock Forecast is based on your current time horizon. Although Toronto Dominion's naive historical forecasting may sometimes provide an important future outlook for the firm, we recommend always cross-verifying it against solid analysis of Toronto Dominion's systematic risk associated with finding meaningful patterns of Toronto Dominion fundamentals over time.
  
As of the 25th of December 2024, Asset Turnover is likely to grow to 0.03, while Inventory Turnover is likely to drop 0.0005. . As of the 25th of December 2024, Common Stock Shares Outstanding is likely to grow to about 1.8 B, while Net Income Applicable To Common Shares is likely to drop about 12.2 B.
Toronto Dominion simple exponential smoothing forecast is a very popular model used to produce a smoothed price series. Whereas in simple Moving Average models the past observations for Toronto Dominion Bank are weighted equally, Exponential Smoothing assigns exponentially decreasing weights as Toronto Dominion Bank prices get older.

Toronto Dominion Simple Exponential Smoothing Price Forecast For the 26th of December

Given 90 days horizon, the Simple Exponential Smoothing forecasted value of Toronto Dominion Bank on the next trading day is expected to be 76.22 with a mean absolute deviation of 0.67, mean absolute percentage error of 1.31, and the sum of the absolute errors of 40.76.
Please note that although there have been many attempts to predict Toronto Stock prices using its time series forecasting, we generally do not recommend using it to place bets in the real market. The most commonly used models for forecasting predictions are the autoregressive models, which specify that Toronto Dominion's next future price depends linearly on its previous prices and some stochastic term (i.e., imperfectly predictable multiplier).

Toronto Dominion Stock Forecast Pattern

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Toronto Dominion Forecasted Value

In the context of forecasting Toronto Dominion's Stock value on the next trading day, we examine the predictive performance of the model to find good statistically significant boundaries of downside and upside scenarios. Toronto Dominion's downside and upside margins for the forecasting period are 74.82 and 77.62, respectively. We have considered Toronto Dominion's daily market price to evaluate the above model's predictive performance. Remember, however, there is no scientific proof or empirical evidence that traditional linear or nonlinear forecasting models outperform artificial intelligence and frequency domain models to provide accurate forecasts consistently.
Market Value
76.22
76.22
Expected Value
77.62
Upside

Model Predictive Factors

The below table displays some essential indicators generated by the model showing the Simple Exponential Smoothing forecasting method's relative quality and the estimations of the prediction error of Toronto Dominion stock data series using in forecasting. Note that when a statistical model is used to represent Toronto Dominion stock, the representation will rarely be exact; so some information will be lost using the model to explain the process. AIC estimates the relative amount of information lost by a given model: the less information a model loses, the higher its quality.
AICAkaike Information Criteria118.3822
BiasArithmetic mean of the errors 0.1361
MADMean absolute deviation0.6682
MAPEMean absolute percentage error0.0086
SAESum of the absolute errors40.76
This simple exponential smoothing model begins by setting Toronto Dominion Bank forecast for the second period equal to the observation of the first period. In other words, recent Toronto Dominion observations are given relatively more weight in forecasting than the older observations.

Predictive Modules for Toronto Dominion

There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Toronto Dominion Bank. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Toronto Dominion's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Hype
Prediction
LowEstimatedHigh
74.7876.1877.58
Details
Intrinsic
Valuation
LowRealHigh
68.6078.0079.40
Details
Earnings
Estimates (0)
LowProjected EPSHigh
1.861.952.10
Details

Other Forecasting Options for Toronto Dominion

For every potential investor in Toronto, whether a beginner or expert, Toronto Dominion's price movement is the inherent factor that sparks whether it is viable to invest in it or hold it better. Toronto Stock price charts are filled with many 'noises.' These noises can hugely alter the decision one can make regarding investing in Toronto. Basic forecasting techniques help filter out the noise by identifying Toronto Dominion's price trends.

Toronto Dominion Related Equities

One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with Toronto Dominion stock to make a market-neutral strategy. Peer analysis of Toronto Dominion could also be used in its relative valuation, which is a method of valuing Toronto Dominion by comparing valuation metrics with similar companies.
 Risk & Return  Correlation

Toronto Dominion Bank Technical and Predictive Analytics

The stock market is financially volatile. Despite the volatility, there exist limitless possibilities of gaining profits and building passive income portfolios. With the complexity of Toronto Dominion's price movements, a comprehensive understanding of forecasting methods that an investor can rely on to make the right move is invaluable. These methods predict trends that assist an investor in predicting the movement of Toronto Dominion's current price.

Toronto Dominion Market Strength Events

Market strength indicators help investors to evaluate how Toronto Dominion stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Toronto Dominion shares will generate the highest return on investment. By undertsting and applying Toronto Dominion stock market strength indicators, traders can identify Toronto Dominion Bank entry and exit signals to maximize returns.

Toronto Dominion Risk Indicators

The analysis of Toronto Dominion's basic risk indicators is one of the essential steps in accurately forecasting its future price. 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 essential techniques for forecasting toronto stock prices, we also provide a set of basic risk indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Pair Trading with Toronto Dominion

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Toronto Dominion position performs unexpectedly, the other equity 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 Toronto Dominion will appreciate offsetting losses from the drop in the long position's value.

Moving against Toronto Stock

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  0.82RY Royal BankPairCorr
  0.73EIF Exchange IncomePairCorr
  0.72EIT-UN Canoe EIT IncomePairCorr
  0.71TRP TC Energy CorpPairCorr
The ability to find closely correlated positions to Toronto Dominion could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Toronto Dominion when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Toronto Dominion - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Toronto Dominion Bank to buy it.
The correlation of Toronto Dominion is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Toronto Dominion moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Toronto Dominion Bank moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Toronto Dominion can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
When determining whether Toronto Dominion Bank is a strong investment it is important to analyze Toronto Dominion's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Toronto Dominion's future performance. For an informed investment choice regarding Toronto Stock, refer to the following important reports:
Check out Historical Fundamental Analysis of Toronto Dominion to cross-verify your projections.
You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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 if Toronto Dominion is a good investment 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.