Correlation Between ATT and Accel Entertainment
Can any of the company-specific risk be diversified away by investing in both ATT 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 ATT and Accel Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and Accel Entertainment, you can compare the effects of market volatilities on ATT 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 ATT with a short position of Accel Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Accel Entertainment.
Diversification Opportunities for ATT and Accel Entertainment
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ATT and Accel is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Accel Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accel Entertainment and ATT 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 ATT Inc 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 ATT i.e., ATT and Accel Entertainment go up and down completely randomly.
Pair Corralation between ATT and Accel Entertainment
Taking into account the 90-day investment horizon ATT Inc is expected to under-perform the Accel Entertainment. But the stock apears to be less risky and, when comparing its historical volatility, ATT Inc is 1.14 times less risky than Accel Entertainment. The stock trades about -0.14 of its potential returns per unit of risk. The Accel Entertainment is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 1,115 in Accel Entertainment on August 14, 2025 and sell it today you would lose (88.00) from holding Accel Entertainment or give up 7.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATT Inc vs. Accel Entertainment
Performance |
| Timeline |
| ATT Inc |
| Accel Entertainment |
ATT and Accel Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and Accel Entertainment
The main advantage of trading using opposite ATT and Accel Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT 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 ATT Inc 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.| Accel Entertainment vs. Nike Inc | Accel Entertainment vs. Sea | Accel Entertainment vs. Airbnb Inc | Accel Entertainment vs. OReilly Automotive |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |