Correlation Between Hims Hers and Accel Entertainment
Can any of the company-specific risk be diversified away by investing in both Hims Hers 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 Hims Hers and Accel Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hims Hers Health and Accel Entertainment, you can compare the effects of market volatilities on Hims Hers 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 Hims Hers with a short position of Accel Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hims Hers and Accel Entertainment.
Diversification Opportunities for Hims Hers and Accel Entertainment
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hims and Accel is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Hims Hers Health and Accel Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accel Entertainment and Hims Hers 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 Hims Hers Health 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 Hims Hers i.e., Hims Hers and Accel Entertainment go up and down completely randomly.
Pair Corralation between Hims Hers and Accel Entertainment
Given the investment horizon of 90 days Hims Hers Health is expected to generate 3.18 times more return on investment than Accel Entertainment. However, Hims Hers is 3.18 times more volatile than Accel Entertainment. It trades about 0.06 of its potential returns per unit of risk. Accel Entertainment is currently generating about 0.09 per unit of risk. If you would invest 1,910 in Hims Hers Health on August 24, 2024 and sell it today you would earn a total of 505.00 from holding Hims Hers Health or generate 26.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Hims Hers Health vs. Accel Entertainment
Performance |
| Timeline |
| Hims Hers Health |
| Accel Entertainment |
Hims Hers and Accel Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hims Hers and Accel Entertainment
The main advantage of trading using opposite Hims Hers and Accel Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hims Hers 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.| Hims Hers vs. ELF Beauty | Hims Hers vs. Newell Brands | Hims Hers vs. Virgin Group Acquisition | Hims Hers vs. Estee Lauder Companies |
| Accel Entertainment vs. Genius Sports | Accel Entertainment vs. Gan | Accel Entertainment vs. Ballys Corp | Accel Entertainment 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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