Correlation Between Everi Holdings and Accel Entertainment

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

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

Diversification Opportunities for Everi Holdings and Accel Entertainment

0.16

Correlation Coefficient

Everi Holdings  Accel Entertainment

Average diversification

The 3 months correlation between Everi and Accel is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Everi Holdings and Accel Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accel Entertainment and Everi Holdings 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 Everi Holdings 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 Everi Holdings i.e., Everi Holdings and Accel Entertainment go up and down completely randomly.

Pair Corralation between Everi Holdings and Accel Entertainment

Given the investment horizon of 90 days Everi Holdings is expected to generate 2.28 times more return on investment than Accel Entertainment. However, Everi Holdings is 2.28 times more volatile than Accel Entertainment. It trades about 0.13 of its potential returns per unit of risk. Accel Entertainment is currently generating about 0.08 per unit of risk. If you would invest  752.00  in Everi Holdings on August 14, 2024 and sell it today you would earn a total of  583.00  from holding Everi Holdings or generate 77.53% return on investment over 90 days.

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

Everi Holdings  vs.  Accel Entertainment

Everi Holdings

Risk-Adjusted Performance

24 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Everi Holdings are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Everi Holdings is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Accel Entertainment

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Accel Entertainment are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite quite abnormal technical and fundamental indicators, Accel Entertainment may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Everi Holdings and Accel Entertainment

The main advantage of trading using opposite Everi Holdings and Accel Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everi Holdings 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 Everi Holdings 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..