Correlation Between Accel Entertainment and PlayAGS
Can any of the company-specific risk be diversified away by investing in both Accel Entertainment and PlayAGS 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 Accel Entertainment and PlayAGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accel Entertainment and PlayAGS, you can compare the effects of market volatilities on Accel Entertainment and PlayAGS 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 Accel Entertainment with a short position of PlayAGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accel Entertainment and PlayAGS.
Diversification Opportunities for Accel Entertainment and PlayAGS
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Accel and PlayAGS is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Accel Entertainment and PlayAGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PlayAGS and Accel Entertainment 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 Accel Entertainment are associated (or correlated) with PlayAGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PlayAGS has no effect on the direction of Accel Entertainment i.e., Accel Entertainment and PlayAGS go up and down completely randomly.
Pair Corralation between Accel Entertainment and PlayAGS
Given the investment horizon of 90 days Accel Entertainment is expected to generate 2.54 times less return on investment than PlayAGS. But when comparing it to its historical volatility, Accel Entertainment is 1.24 times less risky than PlayAGS. It trades about 0.04 of its potential returns per unit of risk. PlayAGS is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 787.00 in PlayAGS on August 27, 2024 and sell it today you would earn a total of 379.00 from holding PlayAGS or generate 48.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accel Entertainment vs. PlayAGS
Performance |
| Timeline |
| Accel Entertainment |
| PlayAGS |
Accel Entertainment and PlayAGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accel Entertainment and PlayAGS
The main advantage of trading using opposite Accel Entertainment and PlayAGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accel Entertainment position performs unexpectedly, PlayAGS 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 PlayAGS will offset losses from the drop in PlayAGS's long position.| Accel Entertainment vs. Light Wonder | Accel Entertainment vs. Everi Holdings | Accel Entertainment vs. Inspired Entertainment | Accel Entertainment vs. International Game Technology |
| PlayAGS vs. Light Wonder | PlayAGS vs. Everi Holdings | PlayAGS vs. Inspired Entertainment | PlayAGS vs. International Game Technology |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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