Correlation Between Accel Entertainment and Playtika Holding
Can any of the company-specific risk be diversified away by investing in both Accel Entertainment and Playtika Holding 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 Playtika Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accel Entertainment and Playtika Holding Corp, you can compare the effects of market volatilities on Accel Entertainment and Playtika Holding 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 Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accel Entertainment and Playtika Holding.
Diversification Opportunities for Accel Entertainment and Playtika Holding
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Accel and Playtika is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Accel Entertainment and Playtika Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playtika Holding Corp 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 Playtika Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playtika Holding Corp has no effect on the direction of Accel Entertainment i.e., Accel Entertainment and Playtika Holding go up and down completely randomly.
Pair Corralation between Accel Entertainment and Playtika Holding
Given the investment horizon of 90 days Accel Entertainment is expected to generate 1.18 times more return on investment than Playtika Holding. However, Accel Entertainment is 1.18 times more volatile than Playtika Holding Corp. It trades about -0.01 of its potential returns per unit of risk. Playtika Holding Corp is currently generating about -0.12 per unit of risk. If you would invest 1,207 in Accel Entertainment on September 13, 2024 and sell it today you would lose (7.00) from holding Accel Entertainment or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accel Entertainment vs. Playtika Holding Corp
Performance |
| Timeline |
| Accel Entertainment |
| Playtika Holding Corp |
Accel Entertainment and Playtika Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accel Entertainment and Playtika Holding
The main advantage of trading using opposite Accel Entertainment and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accel Entertainment position performs unexpectedly, Playtika Holding 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 Playtika Holding will offset losses from the drop in Playtika Holding's long position.| Accel Entertainment vs. Light Wonder | Accel Entertainment vs. Everi Holdings | Accel Entertainment vs. Inspired Entertainment | Accel Entertainment vs. International Game Technology |
| Playtika Holding vs. SohuCom | Playtika Holding vs. Playstudios | Playtika Holding vs. NetEase | Playtika Holding vs. Golden Matrix Group |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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