Correlation Between Vasta Platform and Accel Entertainment

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Can any of the company-specific risk be diversified away by investing in both Vasta Platform 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 Vasta Platform and Accel Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vasta Platform and Accel Entertainment, you can compare the effects of market volatilities on Vasta Platform 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 Vasta Platform with a short position of Accel Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vasta Platform and Accel Entertainment.

Diversification Opportunities for Vasta Platform and Accel Entertainment

-0.68
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Vasta and Accel is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Vasta Platform and Accel Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accel Entertainment and Vasta Platform 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 Vasta Platform 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 Vasta Platform i.e., Vasta Platform and Accel Entertainment go up and down completely randomly.

Pair Corralation between Vasta Platform and Accel Entertainment

Given the investment horizon of 90 days Vasta Platform is expected to generate 0.86 times more return on investment than Accel Entertainment. However, Vasta Platform is 1.16 times less risky than Accel Entertainment. It trades about 0.18 of its potential returns per unit of risk. Accel Entertainment is currently generating about -0.09 per unit of risk. If you would invest  430.00  in Vasta Platform on August 13, 2025 and sell it today you would earn a total of  67.00  from holding Vasta Platform or generate 15.58% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Vasta Platform  vs.  Accel Entertainment

 Performance 
       Timeline  
Vasta Platform 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Vasta Platform are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, Vasta Platform sustained solid returns over the last few months and may actually be approaching a breakup point.
Accel Entertainment 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Accel Entertainment has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's technical and fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Vasta Platform and Accel Entertainment Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Vasta Platform and Accel Entertainment

The main advantage of trading using opposite Vasta Platform and Accel Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vasta Platform 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 Vasta Platform 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.
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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