Correlation Between Accel Entertainment and Nike
Can any of the company-specific risk be diversified away by investing in both Accel Entertainment and Nike 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 Nike into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accel Entertainment and Nike Inc, you can compare the effects of market volatilities on Accel Entertainment and Nike 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 Nike. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accel Entertainment and Nike.
Diversification Opportunities for Accel Entertainment and Nike
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Accel and Nike is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Accel Entertainment and Nike Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nike Inc 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 Nike. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nike Inc has no effect on the direction of Accel Entertainment i.e., Accel Entertainment and Nike go up and down completely randomly.
Pair Corralation between Accel Entertainment and Nike
Given the investment horizon of 90 days Accel Entertainment is expected to generate 0.8 times more return on investment than Nike. However, Accel Entertainment is 1.25 times less risky than Nike. It trades about -0.09 of its potential returns per unit of risk. Nike Inc is currently generating about -0.15 per unit of risk. If you would invest 1,119 in Accel Entertainment on August 16, 2025 and sell it today you would lose (101.00) from holding Accel Entertainment or give up 9.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accel Entertainment vs. Nike Inc
Performance |
| Timeline |
| Accel Entertainment |
| Nike Inc |
Accel Entertainment and Nike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accel Entertainment and Nike
The main advantage of trading using opposite Accel Entertainment and Nike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accel Entertainment position performs unexpectedly, Nike 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 Nike will offset losses from the drop in Nike's long position.| Accel Entertainment vs. Ballys Corp | Accel Entertainment vs. ODP Corp | Accel Entertainment vs. Golden Entertainment | Accel Entertainment vs. Standard Motor Products |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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