Correlation Between International Game and Accel Entertainment
Can any of the company-specific risk be diversified away by investing in both International Game 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 International Game and Accel Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Game Technology and Accel Entertainment, you can compare the effects of market volatilities on International Game 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 International Game with a short position of Accel Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Game and Accel Entertainment.
Diversification Opportunities for International Game and Accel Entertainment
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between International and Accel is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding International Game Technology and Accel Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accel Entertainment and International Game 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 International Game Technology 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 International Game i.e., International Game and Accel Entertainment go up and down completely randomly.
Pair Corralation between International Game and Accel Entertainment
Considering the 90-day investment horizon International Game Technology is expected to under-perform the Accel Entertainment. In addition to that, International Game is 1.12 times more volatile than Accel Entertainment. It trades about -0.04 of its total potential returns per unit of risk. Accel Entertainment is currently generating about 0.04 per unit of volatility. If you would invest 1,014 in Accel Entertainment on August 26, 2024 and sell it today you would earn a total of 150.00 from holding Accel Entertainment or generate 14.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Game Technology vs. Accel Entertainment
Performance |
| Timeline |
| International Game |
| Accel Entertainment |
International Game and Accel Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Game and Accel Entertainment
The main advantage of trading using opposite International Game and Accel Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Game 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.| International Game vs. Accel Entertainment | International Game vs. PlayAGS | International Game vs. Everi Holdings | International Game vs. Light Wonder |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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