Correlation Between Nathans Famous and Accel Entertainment
Can any of the company-specific risk be diversified away by investing in both Nathans Famous 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 Nathans Famous and Accel Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nathans Famous and Accel Entertainment, you can compare the effects of market volatilities on Nathans Famous 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 Nathans Famous with a short position of Accel Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nathans Famous and Accel Entertainment.
Diversification Opportunities for Nathans Famous and Accel Entertainment
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nathans and Accel is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Nathans Famous and Accel Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accel Entertainment and Nathans Famous 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 Nathans Famous 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 Nathans Famous i.e., Nathans Famous and Accel Entertainment go up and down completely randomly.
Pair Corralation between Nathans Famous and Accel Entertainment
Given the investment horizon of 90 days Nathans Famous is expected to generate 1.73 times less return on investment than Accel Entertainment. But when comparing it to its historical volatility, Nathans Famous is 1.12 times less risky than Accel Entertainment. It trades about 0.02 of its potential returns per unit of risk. Accel Entertainment is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,124 in Accel Entertainment on June 1, 2025 and sell it today you would earn a total of 35.00 from holding Accel Entertainment or generate 3.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nathans Famous vs. Accel Entertainment
Performance |
| Timeline |
| Nathans Famous |
| Accel Entertainment |
Nathans Famous and Accel Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nathans Famous and Accel Entertainment
The main advantage of trading using opposite Nathans Famous and Accel Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nathans Famous 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.| Nathans Famous vs. Rave Restaurant Group | Nathans Famous vs. Ark Restaurants Corp | Nathans Famous vs. One Group Hospitality | Nathans Famous vs. Flanigans Enterprises |
| Accel Entertainment vs. Ballys Corp | Accel Entertainment vs. Golden Entertainment | Accel Entertainment vs. Inspired Entertainment | Accel Entertainment vs. Light Wonder |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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