Correlation Between Accel Entertainment and International Game
Can any of the company-specific risk be diversified away by investing in both Accel Entertainment and International Game 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 International Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accel Entertainment and International Game Technology, you can compare the effects of market volatilities on Accel Entertainment and International Game 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 International Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accel Entertainment and International Game.
Diversification Opportunities for Accel Entertainment and International Game
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Accel and International is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Accel Entertainment and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game 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 International Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Game has no effect on the direction of Accel Entertainment i.e., Accel Entertainment and International Game go up and down completely randomly.
Pair Corralation between Accel Entertainment and International Game
Given the investment horizon of 90 days Accel Entertainment is expected to generate 0.91 times more return on investment than International Game. However, Accel Entertainment is 1.1 times less risky than International Game. It trades about 0.12 of its potential returns per unit of risk. International Game Technology is currently generating about -0.18 per unit of risk. If you would invest 1,103 in Accel Entertainment on August 23, 2024 and sell it today you would earn a total of 48.00 from holding Accel Entertainment or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accel Entertainment vs. International Game Technology
Performance |
| Timeline |
| Accel Entertainment |
| International Game |
Accel Entertainment and International Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accel Entertainment and International Game
The main advantage of trading using opposite Accel Entertainment and International Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accel Entertainment position performs unexpectedly, International Game 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 International Game will offset losses from the drop in International Game's long position.| Accel Entertainment vs. Genius Sports | Accel Entertainment vs. Gan | Accel Entertainment vs. Ballys Corp | Accel Entertainment vs. Hims Hers Health |
| International Game vs. Genius Sports | International Game vs. Gan | International Game vs. Ballys Corp | International Game vs. Hims Hers Health |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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