Correlation Between Abercrombie Fitch and Triumph Apparel
Can any of the company-specific risk be diversified away by investing in both Abercrombie Fitch and Triumph Apparel 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 Triumph Apparel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abercrombie Fitch and Triumph Apparel, you can compare the effects of market volatilities on Abercrombie Fitch and Triumph Apparel 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 Triumph Apparel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abercrombie Fitch and Triumph Apparel.
Diversification Opportunities for Abercrombie Fitch and Triumph Apparel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Abercrombie and Triumph is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Abercrombie Fitch and Triumph Apparel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triumph Apparel 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 Triumph Apparel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triumph Apparel has no effect on the direction of Abercrombie Fitch i.e., Abercrombie Fitch and Triumph Apparel go up and down completely randomly.
Pair Corralation between Abercrombie Fitch and Triumph Apparel
If you would invest 14,025 in Abercrombie Fitch on October 11, 2024 and sell it today you would earn a total of 1,137 from holding Abercrombie Fitch or generate 8.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.56% |
| Values | Daily Returns |
Abercrombie Fitch vs. Triumph Apparel
Performance |
| Timeline |
| Abercrombie Fitch |
| Triumph Apparel |
Abercrombie Fitch and Triumph Apparel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abercrombie Fitch and Triumph Apparel
The main advantage of trading using opposite Abercrombie Fitch and Triumph Apparel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abercrombie Fitch position performs unexpectedly, Triumph Apparel 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 Triumph Apparel will offset losses from the drop in Triumph Apparel's long position.| Abercrombie Fitch vs. Urban Outfitters | Abercrombie Fitch vs. Foot Locker | Abercrombie Fitch vs. Childrens Place | Abercrombie Fitch vs. American Eagle Outfitters |
| Triumph Apparel vs. Acumen Pharmaceuticals | Triumph Apparel vs. Abercrombie Fitch | Triumph Apparel vs. RadNet Inc | Triumph Apparel vs. Cintas |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |