Correlation Between Healthcare Realty and Belpointe PREP

Can any of the company-specific risk be diversified away by investing in both Healthcare Realty and Belpointe PREP 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 Healthcare Realty and Belpointe PREP into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Healthcare Realty Trust and Belpointe PREP LLC, you can compare the effects of market volatilities on Healthcare Realty and Belpointe PREP 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 Healthcare Realty with a short position of Belpointe PREP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthcare Realty and Belpointe PREP.

Diversification Opportunities for Healthcare Realty and Belpointe PREP

0.48

Correlation Coefficient

Healthcare Realty  Belpointe PREP

Very weak diversification

The 3 months correlation between Healthcare and Belpointe is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Realty Trust and Belpointe PREP LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Belpointe PREP LLC and Healthcare Realty 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 Healthcare Realty Trust are associated (or correlated) with Belpointe PREP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Belpointe PREP LLC has no effect on the direction of Healthcare Realty i.e., Healthcare Realty and Belpointe PREP go up and down completely randomly.

Pair Corralation between Healthcare Realty and Belpointe PREP

Allowing for the 90-day total investment horizon Healthcare Realty Trust is expected to generate 0.68 times more return on investment than Belpointe PREP. However, Healthcare Realty Trust is 1.47 times less risky than Belpointe PREP. It trades about 0.06 of its potential returns per unit of risk. Belpointe PREP LLC is currently generating about -0.01 per unit of risk. If you would invest  1,396  in Healthcare Realty Trust on July 10, 2024 and sell it today you would earn a total of  343.00  from holding Healthcare Realty Trust or generate 24.57% return on investment over 90 days.

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

Healthcare Realty Trust  vs.  Belpointe PREP LLC

Healthcare Realty Trust

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Healthcare Realty Trust are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Healthcare Realty is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Belpointe PREP LLC

Risk-Adjusted Performance

5 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Belpointe PREP LLC are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Belpointe PREP may actually be approaching a critical reversion point that can send shares even higher in November 2024.

Pair Trading with Healthcare Realty and Belpointe PREP

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

The idea behind Healthcare Realty Trust and Belpointe PREP LLC 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.