Correlation Between Belpointe PREP and MDJM
Can any of the company-specific risk be diversified away by investing in both Belpointe PREP and MDJM 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 Belpointe PREP and MDJM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Belpointe PREP LLC and MDJM, you can compare the effects of market volatilities on Belpointe PREP and MDJM 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 Belpointe PREP with a short position of MDJM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Belpointe PREP and MDJM.
Diversification Opportunities for Belpointe PREP and MDJM
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Belpointe and MDJM is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Belpointe PREP LLC and MDJM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MDJM and Belpointe PREP 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 Belpointe PREP LLC are associated (or correlated) with MDJM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MDJM has no effect on the direction of Belpointe PREP i.e., Belpointe PREP and MDJM go up and down completely randomly.
Pair Corralation between Belpointe PREP and MDJM
Allowing for the 90-day total investment horizon Belpointe PREP LLC is expected to generate 0.22 times more return on investment than MDJM. However, Belpointe PREP LLC is 4.6 times less risky than MDJM. It trades about 0.1 of its potential returns per unit of risk. MDJM is currently generating about -0.06 per unit of risk. If you would invest 5,790 in Belpointe PREP LLC on September 26, 2024 and sell it today you would earn a total of 1,810 from holding Belpointe PREP LLC or generate 31.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Belpointe PREP LLC vs. MDJM
Performance |
| Timeline |
| Belpointe PREP LLC |
| MDJM |
Belpointe PREP and MDJM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Belpointe PREP and MDJM
The main advantage of trading using opposite Belpointe PREP and MDJM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Belpointe PREP position performs unexpectedly, MDJM 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 MDJM will offset losses from the drop in MDJM's long position.| Belpointe PREP vs. CareTrust REIT | Belpointe PREP vs. Global Medical REIT | Belpointe PREP vs. Universal Health Realty | Belpointe PREP vs. Healthpeak Properties |
| MDJM vs. Wetouch Technology Common | MDJM vs. New Concept Energy | MDJM vs. DigitalBridge Group | MDJM vs. DigitalBridge Group |
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 Stocks Directory module to find actively traded stocks across global markets.
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