Correlation Between Abercrombie Fitch and CP ALL
Can any of the company-specific risk be diversified away by investing in both Abercrombie Fitch and CP ALL at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Abercrombie Fitch and CP ALL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abercrombie Fitch and CP ALL Public, you can compare the effects of market volatilities on Abercrombie Fitch and CP ALL and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Abercrombie Fitch with a short position of CP ALL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abercrombie Fitch and CP ALL.
Diversification Opportunities for Abercrombie Fitch and CP ALL
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Abercrombie and CVPBF is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Abercrombie Fitch and CP ALL Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CP ALL Public and Abercrombie Fitch is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Abercrombie Fitch are associated (or correlated) with CP ALL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CP ALL Public has no effect on the direction of Abercrombie Fitch i.e., Abercrombie Fitch and CP ALL go up and down completely randomly.
Pair Corralation between Abercrombie Fitch and CP ALL
Considering the 90-day investment horizon Abercrombie Fitch is expected to generate 0.93 times more return on investment than CP ALL. However, Abercrombie Fitch is 1.08 times less risky than CP ALL. It trades about 0.11 of its potential returns per unit of risk. CP ALL Public is currently generating about 0.01 per unit of risk. If you would invest 2,779 in Abercrombie Fitch on October 11, 2024 and sell it today you would earn a total of 12,383 from holding Abercrombie Fitch or generate 445.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 66.26% |
Values | Daily Returns |
Abercrombie Fitch vs. CP ALL Public
Performance |
Timeline |
Abercrombie Fitch |
CP ALL Public |
Abercrombie Fitch and CP ALL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Abercrombie Fitch and CP ALL
The main advantage of trading using opposite Abercrombie Fitch and CP ALL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abercrombie Fitch position performs unexpectedly, CP ALL 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 CP ALL will offset losses from the drop in CP ALL's long position.Abercrombie Fitch vs. Urban Outfitters | Abercrombie Fitch vs. Foot Locker | Abercrombie Fitch vs. Childrens Place | Abercrombie Fitch vs. American Eagle Outfitters |
CP ALL vs. Kontoor Brands | CP ALL vs. Seadrill Limited | CP ALL vs. Boot Barn Holdings | CP ALL vs. Abercrombie Fitch |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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