Correlation Between Abercrombie Fitch and Fresh2

Can any of the company-specific risk be diversified away by investing in both Abercrombie Fitch and Fresh2 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 Fresh2 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Abercrombie Fitch and Fresh2 Group, you can compare the effects of market volatilities on Abercrombie Fitch and Fresh2 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 Fresh2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abercrombie Fitch and Fresh2.

Diversification Opportunities for Abercrombie Fitch and Fresh2

0.0

Correlation Coefficient

Abercrombie Fitch  Fresh2

Pay attention - limited upside

The 3 months correlation between Abercrombie and Fresh2 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Abercrombie Fitch and Fresh2 Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fresh2 Group 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 Fresh2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fresh2 Group has no effect on the direction of Abercrombie Fitch i.e., Abercrombie Fitch and Fresh2 go up and down completely randomly.

Pair Corralation between Abercrombie Fitch and Fresh2

If you would invest (100.00) in Fresh2 Group on December 20, 2024 and sell it today you would earn a total of  100.00  from holding Fresh2 Group or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Abercrombie Fitch  vs.  Fresh2 Group

Abercrombie Fitch

Risk-Adjusted Performance

Very Weak

Over the last 90 days Abercrombie Fitch has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Fresh2 Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fresh2 Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Fresh2 is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Abercrombie Fitch and Fresh2

The main advantage of trading using opposite Abercrombie Fitch and Fresh2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abercrombie Fitch position performs unexpectedly, Fresh2 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 Fresh2 will offset losses from the drop in Fresh2's long position.

The idea behind Abercrombie Fitch and Fresh2 Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.