Correlation Between XRP and Accel Entertainment
Can any of the company-specific risk be diversified away by investing in both XRP 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 XRP and Accel Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XRP and Accel Entertainment, you can compare the effects of market volatilities on XRP 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 XRP with a short position of Accel Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of XRP and Accel Entertainment.
Diversification Opportunities for XRP and Accel Entertainment
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between XRP and Accel is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding XRP and Accel Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accel Entertainment and XRP 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 XRP 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 XRP i.e., XRP and Accel Entertainment go up and down completely randomly.
Pair Corralation between XRP and Accel Entertainment
Assuming the 90 days trading horizon XRP is expected to generate 3.71 times more return on investment than Accel Entertainment. However, XRP is 3.71 times more volatile than Accel Entertainment. It trades about 0.14 of its potential returns per unit of risk. Accel Entertainment is currently generating about 0.04 per unit of risk. If you would invest 37.00 in XRP on November 1, 2024 and sell it today you would earn a total of 276.00 from holding XRP or generate 745.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 58.44% |
| Values | Daily Returns |
XRP vs. Accel Entertainment
Performance |
| Timeline |
| XRP |
| Accel Entertainment |
XRP and Accel Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XRP and Accel Entertainment
The main advantage of trading using opposite XRP and Accel Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XRP 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.The idea behind XRP and Accel Entertainment pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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