Correlation Between Accel Entertainment and Rush Street

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

By analyzing existing cross correlation between Accel Entertainment and Rush Street Interactive, you can compare the effects of market volatilities on Accel Entertainment and Rush Street 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 Rush Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accel Entertainment and Rush Street.

Diversification Opportunities for Accel Entertainment and Rush Street

0.71

Correlation Coefficient

Accel Entertainment  Rush Street

Poor diversification

The 3 months correlation between Accel and Rush is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Accel Entertainment and Rush Street Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rush Street Interactive 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 Rush Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rush Street Interactive has no effect on the direction of Accel Entertainment i.e., Accel Entertainment and Rush Street go up and down completely randomly.

Pair Corralation between Accel Entertainment and Rush Street

Given the investment horizon of 90 days Accel Entertainment is expected to generate 0.46 times more return on investment than Rush Street. However, Accel Entertainment is 2.18 times less risky than Rush Street. It trades about -0.02 of its potential returns per unit of risk. Rush Street Interactive is currently generating about -0.07 per unit of risk. If you would invest  1,064  in Accel Entertainment on December 27, 2024 and sell it today you would lose (40.00) from holding Accel Entertainment or give up 3.76% of portfolio value over 90 days.

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

Accel Entertainment  vs.  Rush Street Interactive

Accel Entertainment

Risk-Adjusted Performance

Very Weak

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

Rush Street Interactive

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rush Street Interactive has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Accel Entertainment and Rush Street

The main advantage of trading using opposite Accel Entertainment and Rush Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accel Entertainment position performs unexpectedly, Rush Street 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 Rush Street will offset losses from the drop in Rush Street's long position.

The idea behind Accel Entertainment and Rush Street Interactive 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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.