Correlation Between Sweetgreen and Accel Entertainment
Can any of the company-specific risk be diversified away by investing in both Sweetgreen 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 Sweetgreen and Accel Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Accel Entertainment, you can compare the effects of market volatilities on Sweetgreen 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 Sweetgreen with a short position of Accel Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Accel Entertainment.
Diversification Opportunities for Sweetgreen and Accel Entertainment
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sweetgreen and Accel is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Accel Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accel Entertainment and Sweetgreen 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 Sweetgreen 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 Sweetgreen i.e., Sweetgreen and Accel Entertainment go up and down completely randomly.
Pair Corralation between Sweetgreen and Accel Entertainment
Allowing for the 90-day total investment horizon Sweetgreen is expected to under-perform the Accel Entertainment. In addition to that, Sweetgreen is 3.49 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 1,214 in Accel Entertainment on September 12, 2024 and sell it today you would lose (19.00) from holding Accel Entertainment or give up 1.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sweetgreen vs. Accel Entertainment
Performance |
| Timeline |
| Sweetgreen |
| Accel Entertainment |
Sweetgreen and Accel Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Accel Entertainment
The main advantage of trading using opposite Sweetgreen and Accel Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen 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.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
| 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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