RY vs TD: Correlation
Royal Bank Of Canada (RY) and Toronto Dominion Bank (The) (TD) show a moderate relationship: their 3-year correlation of weekly returns is 0.57.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are RY and TD?
Over the past 3 years, RY and TD moved with a correlation of 0.57, which is moderate. The link has tightened recently: the 1-year correlation (0.85) runs above the 3-year figure (0.57). Over 5 years the correlation is 0.69, and the annualized covariance of weekly returns is 175.3 %².
By 3-year correlation, TD places #6 of the 11 assets tracked against RY. Their recent paths diverged sharply: over the last 12 months TD outperformed by 18.8 percentage points (+42.6% for RY against +61.4% for TD).
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
RY vs TD: side by side
| RY (Royal Bank Of Canada) | TD (Toronto Dominion Bank (The)) | |
|---|---|---|
| 1-year return | +42.6% | +61.4% |
| 5-year return | +132.0% | +124.4% |
| Volatility (ann.) | 16.1% | 19.1% |
| Beta vs S&P 500 | 0.57 | 0.59 |
| Max drawdown (3Y) | -14.6% | -19.2% |
| Market cap | $283.2B | $198.4B |
| P/E (trailing) | 18.7 | 19.4 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | RY | TD |
|---|---|---|
| 2022 | -8.0% | -12.2% |
| 2023 | +12.2% | +4.6% |
| 2024 | +23.8% | -13.4% |
| 2025 | +45.2% | +83.6% |
| 2026 | +21.5% | +30.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are RY and TD good diversifiers for each other?
Only partially. A correlation of 0.57 means RY and TD share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between RY and TD?
Using weekly returns as of 2026-08-27: 0.57 over 3 years, with 0.85 over the last year and 0.69 over 5 years.
Is TD a good diversifier for RY?
Only partially. A correlation of 0.57 means RY and TD share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.57 mean?
On the −1 to +1 scale, 0.57 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ry-vs-td.json
Embed this badge (it refreshes with the data), with attribution:
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The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: RY correlations · TD correlations
