Correlation Between Griffin-American and Ansys

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

Diversification Opportunities for Griffin-American and Ansys

0.6
  Correlation Coefficient

Poor diversification

The 3 months correlation between Griffin-American and Ansys is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Griffin-American Healthcare RE and Ansys Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ansys Inc and Griffin-American 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 Griffin-American Healthcare REIT are associated (or correlated) with Ansys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ansys Inc has no effect on the direction of Griffin-American i.e., Griffin-American and Ansys go up and down completely randomly.

Pair Corralation between Griffin-American and Ansys

If you would invest  22,116  in Ansys Inc on August 31, 2022 and sell it today you would earn a total of  1,947  from holding Ansys Inc or generate 8.8% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy95.24%
ValuesDaily Returns

Griffin-American Healthcare RE  vs.  Ansys Inc

 Performance (%) 
       Timeline  
Griffin-American Hea 
Griffin-American Performance
0 of 100
Over the last 90 days Griffin-American Healthcare REIT has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Griffin-American Price Channel

Ansys Inc 
Ansys Performance
0 of 100
Over the last 90 days Ansys Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Ansys is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Ansys Price Channel

Griffin-American and Ansys Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Griffin-American and Ansys

The main advantage of trading using opposite Griffin-American and Ansys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffin-American position performs unexpectedly, Ansys 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 Ansys will offset losses from the drop in Ansys' long position.
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The idea behind Griffin-American Healthcare REIT and Ansys Inc 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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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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