Correlation Between Century Casinos and Accel Entertainment

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

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

Diversification Opportunities for Century Casinos and Accel Entertainment

0.69

Correlation Coefficient

Century Casinos  Accel Entertainment

Poor diversification

The 3 months correlation between Century and Accel is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Century Casinos and Accel Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accel Entertainment and Century Casinos 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 Century Casinos 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 Century Casinos i.e., Century Casinos and Accel Entertainment go up and down completely randomly.

Pair Corralation between Century Casinos and Accel Entertainment

Given the investment horizon of 90 days Century Casinos is expected to generate 3.5 times more return on investment than Accel Entertainment. However, Century Casinos is 3.5 times more volatile than Accel Entertainment. It trades about 0.15 of its potential returns per unit of risk. Accel Entertainment is currently generating about 0.16 per unit of risk. If you would invest  146.00  in Century Casinos on May 5, 2025 and sell it today you would earn a total of  74.00  from holding Century Casinos or generate 50.68% return on investment over 90 days.

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

Century Casinos  vs.  Accel Entertainment

Century Casinos

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Century Casinos are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, Century Casinos showed solid returns over the last few months and may actually be approaching a breakup point.

Accel Entertainment

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Accel Entertainment are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite weak technical and fundamental indicators, Accel Entertainment disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Century Casinos and Accel Entertainment

The main advantage of trading using opposite Century Casinos and Accel Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Century Casinos 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 Century Casinos 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.

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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.