Correlation Between Accel Entertainment and Flex

Can any of the company-specific risk be diversified away by investing in both Accel Entertainment and Flex 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 Accel Entertainment and Flex into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Accel Entertainment and Flex, you can compare the effects of market volatilities on Accel Entertainment and Flex 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 Accel Entertainment with a short position of Flex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accel Entertainment and Flex.

Diversification Opportunities for Accel Entertainment and Flex

-0.63

Correlation Coefficient

Accel Entertainment  Flex

Excellent diversification

The 3 months correlation between Accel and Flex is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Accel Entertainment and Flex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flex and Accel Entertainment 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 Accel Entertainment are associated (or correlated) with Flex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flex has no effect on the direction of Accel Entertainment i.e., Accel Entertainment and Flex go up and down completely randomly.

Pair Corralation between Accel Entertainment and Flex

Given the investment horizon of 90 days Accel Entertainment is expected to under-perform the Flex. But the stock apears to be less risky and, when comparing its historical volatility, Accel Entertainment is 1.59 times less risky than Flex. The stock trades about -0.16 of its potential returns per unit of risk. The Flex is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  5,373  in Flex on August 27, 2025 and sell it today you would earn a total of  322.00  from holding Flex or generate 5.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Accel Entertainment  vs.  Flex

Accel Entertainment

Risk-Adjusted Performance

Weakest

Over the last 90 days Accel Entertainment has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in December 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Flex

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Flex are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting technical and fundamental indicators, Flex may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with Accel Entertainment and Flex

The main advantage of trading using opposite Accel Entertainment and Flex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accel Entertainment position performs unexpectedly, Flex 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 Flex will offset losses from the drop in Flex's long position.

The idea behind Accel Entertainment and Flex 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.