Correlation Between Playmaker Capital and Accel Entertainment

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

By analyzing existing cross correlation between Playmaker Capital and Accel Entertainment, you can compare the effects of market volatilities on Playmaker Capital 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 Playmaker Capital with a short position of Accel Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playmaker Capital and Accel Entertainment.

Diversification Opportunities for Playmaker Capital and Accel Entertainment

0.0

Correlation Coefficient

Playmaker Capital  Accel Entertainment

Pay attention - limited upside

The 3 months correlation between Playmaker and Accel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Playmaker Capital and Accel Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accel Entertainment and Playmaker Capital 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 Playmaker Capital 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 Playmaker Capital i.e., Playmaker Capital and Accel Entertainment go up and down completely randomly.

Pair Corralation between Playmaker Capital and Accel Entertainment

If you would invest (100.00) in Playmaker Capital on December 7, 2024 and sell it today you would earn a total of  100.00  from holding Playmaker Capital or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Playmaker Capital  vs.  Accel Entertainment

Playmaker Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Playmaker Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Playmaker Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

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 abnormal performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Playmaker Capital and Accel Entertainment

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

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.