Correlation Between SentinelOne and Accel Entertainment

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

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

Diversification Opportunities for SentinelOne and Accel Entertainment

0.44

Correlation Coefficient

SentinelOne  Accel Entertainment

Very weak diversification

The 3 months correlation between SentinelOne and Accel is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Accel Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accel Entertainment and SentinelOne 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 SentinelOne 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 SentinelOne i.e., SentinelOne and Accel Entertainment go up and down completely randomly.

Pair Corralation between SentinelOne and Accel Entertainment

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Accel Entertainment. In addition to that, SentinelOne is 1.18 times more volatile than Accel Entertainment. It trades about -0.08 of its total potential returns per unit of risk. Accel Entertainment is currently generating about 0.03 per unit of volatility. If you would invest  1,130  in Accel Entertainment on May 27, 2025 and sell it today you would earn a total of  32.00  from holding Accel Entertainment or generate 2.83% return on investment over 90 days.

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

SentinelOne  vs.  Accel Entertainment

SentinelOne

Risk-Adjusted Performance

Weakest

Over the last 90 days SentinelOne has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Accel Entertainment

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Accel Entertainment are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent technical and fundamental indicators, Accel Entertainment is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with SentinelOne and Accel Entertainment

The main advantage of trading using opposite SentinelOne and Accel Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne 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 SentinelOne 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.