Correlation Between Gan and Accel Entertainment
Can any of the company-specific risk be diversified away by investing in both Gan 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 Gan and Accel Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gan and Accel Entertainment, you can compare the effects of market volatilities on Gan 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 Gan with a short position of Accel Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan and Accel Entertainment.
Diversification Opportunities for Gan and Accel Entertainment
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gan and Accel is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Gan and Accel Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accel Entertainment and Gan 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 Gan 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 Gan i.e., Gan and Accel Entertainment go up and down completely randomly.
Pair Corralation between Gan and Accel Entertainment
Considering the 90-day investment horizon Gan is expected to generate 0.91 times more return on investment than Accel Entertainment. However, Gan is 1.1 times less risky than Accel Entertainment. It trades about 0.06 of its potential returns per unit of risk. Accel Entertainment is currently generating about 0.02 per unit of risk. If you would invest 152.00 in Gan on August 27, 2024 and sell it today you would earn a total of 32.00 from holding Gan or generate 21.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan vs. Accel Entertainment
Performance |
| Timeline |
| Gan |
| Accel Entertainment |
Gan and Accel Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan and Accel Entertainment
The main advantage of trading using opposite Gan and Accel Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan 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.| Gan vs. Rush Street Interactive | Gan vs. Inspired Entertainment | Gan vs. PlayAGS | Gan vs. Accel Entertainment |
| Accel Entertainment vs. Light Wonder | Accel Entertainment vs. Everi Holdings | Accel Entertainment vs. Inspired Entertainment | Accel Entertainment 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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