Correlation Between 888 Holdings and Accel Entertainment
Can any of the company-specific risk be diversified away by investing in both 888 Holdings and Accel Entertainment 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 888 Holdings and Accel Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 888 Holdings and Accel Entertainment, you can compare the effects of market volatilities on 888 Holdings and Accel Entertainment 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 888 Holdings with a short position of Accel Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of 888 Holdings and Accel Entertainment.
Diversification Opportunities for 888 Holdings and Accel Entertainment
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 888 and Accel is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding 888 Holdings and Accel Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accel Entertainment and 888 Holdings 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 888 Holdings are associated (or correlated) with Accel Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accel Entertainment has no effect on the direction of 888 Holdings i.e., 888 Holdings and Accel Entertainment go up and down completely randomly.
Pair Corralation between 888 Holdings and Accel Entertainment
Assuming the 90 days horizon 888 Holdings is expected to under-perform the Accel Entertainment. In addition to that, 888 Holdings is 2.06 times more volatile than Accel Entertainment. It trades about 0.0 of its total potential returns per unit of risk. Accel Entertainment is currently generating about 0.05 per unit of volatility. If you would invest 797.00 in Accel Entertainment on September 4, 2024 and sell it today you would earn a total of 378.00 from holding Accel Entertainment or generate 47.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
888 Holdings vs. Accel Entertainment
Performance |
| Timeline |
| 888 Holdings |
| Accel Entertainment |
888 Holdings and Accel Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 888 Holdings and Accel Entertainment
The main advantage of trading using opposite 888 Holdings and Accel Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 888 Holdings position performs unexpectedly, Accel Entertainment 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 Accel Entertainment will offset losses from the drop in Accel Entertainment's long position.| 888 Holdings vs. Everi Holdings | 888 Holdings vs. Intema Solutions | 888 Holdings vs. Light Wonder | 888 Holdings vs. International Game Technology |
| Accel Entertainment vs. Hyatt Hotels | Accel Entertainment vs. Smart Share Global | Accel Entertainment vs. Sweetgreen | Accel Entertainment vs. Wyndham Hotels Resorts |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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