Correlation Between Abercrombie Fitch and Greenvale Mining

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

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

Diversification Opportunities for Abercrombie Fitch and Greenvale Mining

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Correlation Coefficient

Abercrombie Fitch  Greenvale Mining

Pay attention - limited upside

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

Pair Corralation between Abercrombie Fitch and Greenvale Mining

If you would invest  5.00  in Greenvale Mining Limited on October 27, 2024 and sell it today you would earn a total of  0.00  from holding Greenvale Mining Limited or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Abercrombie Fitch  vs.  Greenvale Mining Limited

Abercrombie Fitch

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Abercrombie Fitch has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Greenvale Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Greenvale Mining Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Greenvale Mining is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Abercrombie Fitch and Greenvale Mining

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

The idea behind Abercrombie Fitch and Greenvale Mining Limited 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.