Abercrombie Story

Closer look at Abercrombie Fitch Standard Deviation

Abercrombie Fitch has current Standard Deviation of 3.12. The Standard Deviation is a measure of how spread out the prices or returns of an asset are on average. It is the most widely used risk indicator in the field of investing and finance. Standard Deviation is commonly used to measure confidence in statistical conclusions regarding certain equity instruments or portfolios of equities.

Standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected market volatility. A large standard deviation usually indicates that the data points are far from the mean and a small standard deviation indicates that they are clustered closely around the mean.

Standard Deviation  =   SQRT(V)

=

3.12

SQRT	=	Square root notation
V	=	Variance of Abercrombie Fitch returns

Let's now compare Abercrombie Fitch Standard Deviation to its closest peers:

	ANF	3.122998325731657
	DLTH	3.86
	AEO	2.31
	FRANQ	9.32
	CRI	2.71

Abercrombie is expecting lower volatility in April

Abercrombie Fitch latest mean deviation ascents over 2.39. Abercrombie Fitch currently demonstrates below-average downside deviation. It has Information Ratio of 0.12 and Jensen Alpha of 0.43. However, we advise investors to further question Abercrombie Fitch expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Abercrombie Fitch's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Abercrombie Fitch's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Conclusion on Abercrombie Fitch

Although other entities within the apparel retail industry are still a little expensive, even after the recent corrections, Abercrombie Fitch may offer a potential longer-term growth to shareholders. All things considered, as of the 2nd of March 2021, our analysis shows that Abercrombie Fitch barely shadows the market. The firm is overvalued and projects low chance of financial distress for the next 2 years. Our ongoing 30 days Buy-Hold-Sell recommendation on the firm is Strong Hold.