Correlation Between Shoe Carnival and Accel Entertainment

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

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

Diversification Opportunities for Shoe Carnival and Accel Entertainment

-0.19

Correlation Coefficient

Shoe Carnival  Accel Entertainment

Good diversification

The 3 months correlation between Shoe and Accel is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Shoe Carnival and Accel Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accel Entertainment and Shoe Carnival 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 Shoe Carnival 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 Shoe Carnival i.e., Shoe Carnival and Accel Entertainment go up and down completely randomly.

Pair Corralation between Shoe Carnival and Accel Entertainment

Given the investment horizon of 90 days Shoe Carnival is expected to generate 1.43 times more return on investment than Accel Entertainment. However, Shoe Carnival is 1.43 times more volatile than Accel Entertainment. It trades about -0.01 of its potential returns per unit of risk. Accel Entertainment is currently generating about -0.09 per unit of risk. If you would invest  2,171  in Shoe Carnival on July 10, 2025 and sell it today you would lose (134.00) from holding Shoe Carnival or give up 6.17% of portfolio value over 90 days.

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

Shoe Carnival  vs.  Accel Entertainment

Shoe Carnival

Risk-Adjusted Performance

Weak

Over the last 90 days Shoe Carnival has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Shoe Carnival is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

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 weak performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in November 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Shoe Carnival and Accel Entertainment

The main advantage of trading using opposite Shoe Carnival and Accel Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shoe Carnival 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 Shoe Carnival 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.