Correlation Between First Industrial and Belpointe PREP
Can any of the company-specific risk be diversified away by investing in both First Industrial 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 First Industrial and Belpointe PREP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Industrial Realty and Belpointe PREP LLC, you can compare the effects of market volatilities on First Industrial 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 First Industrial with a short position of Belpointe PREP. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Industrial and Belpointe PREP.
Diversification Opportunities for First Industrial and Belpointe PREP
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between First and Belpointe is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding First Industrial Realty 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 First Industrial 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 First Industrial Realty 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 First Industrial i.e., First Industrial and Belpointe PREP go up and down completely randomly.
Pair Corralation between First Industrial and Belpointe PREP
Allowing for the 90-day total investment horizon First Industrial Realty is expected to under-perform the Belpointe PREP. But the stock apears to be less risky and, when comparing its historical volatility, First Industrial Realty is 1.05 times less risky than Belpointe PREP. The stock trades about -0.05 of its potential returns per unit of risk. The Belpointe PREP LLC is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 6,637 in Belpointe PREP LLC on August 25, 2024 and sell it today you would earn a total of 395.00 from holding Belpointe PREP LLC or generate 5.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Industrial Realty vs. Belpointe PREP LLC
Performance |
| Timeline |
| First Industrial Realty |
| Belpointe PREP LLC |
First Industrial and Belpointe PREP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Industrial and Belpointe PREP
The main advantage of trading using opposite First Industrial and Belpointe PREP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Industrial 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.| First Industrial vs. Boston Properties | First Industrial vs. Alexandria Real Estate | First Industrial vs. Highwoods Properties | First Industrial vs. Hudson Pacific Properties |
| Belpointe PREP vs. Sun Hung Kai | Belpointe PREP vs. Bayport International Holdings | Belpointe PREP vs. Landsea Homes Corp | Belpointe PREP vs. American Realty Investors |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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