Correlation Between Belpointe PREP and Gaucho Group
Can any of the company-specific risk be diversified away by investing in both Belpointe PREP and Gaucho Group 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 Gaucho Group 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 Gaucho Group Holdings, you can compare the effects of market volatilities on Belpointe PREP and Gaucho Group 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 Gaucho Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Belpointe PREP and Gaucho Group.
Diversification Opportunities for Belpointe PREP and Gaucho Group
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Belpointe and Gaucho is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Belpointe PREP LLC and Gaucho Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaucho Group Holdings 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 Gaucho Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaucho Group Holdings has no effect on the direction of Belpointe PREP i.e., Belpointe PREP and Gaucho Group go up and down completely randomly.
Pair Corralation between Belpointe PREP and Gaucho Group
Allowing for the 90-day total investment horizon Belpointe PREP LLC is expected to generate 0.11 times more return on investment than Gaucho Group. However, Belpointe PREP LLC is 8.81 times less risky than Gaucho Group. It trades about -0.03 of its potential returns per unit of risk. Gaucho Group Holdings is currently generating about -0.02 per unit of risk. If you would invest 10,000 in Belpointe PREP LLC on August 27, 2024 and sell it today you would lose (2,968) from holding Belpointe PREP LLC or give up 29.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Belpointe PREP LLC vs. Gaucho Group Holdings
Performance |
| Timeline |
| Belpointe PREP LLC |
| Gaucho Group Holdings |
Belpointe PREP and Gaucho Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Belpointe PREP and Gaucho Group
The main advantage of trading using opposite Belpointe PREP and Gaucho Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Belpointe PREP position performs unexpectedly, Gaucho Group 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 Gaucho Group will offset losses from the drop in Gaucho Group's long position.| Belpointe PREP vs. Sun Hung Kai | Belpointe PREP vs. Bayport International Holdings | Belpointe PREP vs. Landsea Homes Corp | Belpointe PREP vs. American Realty Investors |
| Gaucho Group vs. Investcorp Credit Management | Gaucho Group vs. Medalist Diversified Reit | Gaucho Group vs. Aquagold International | Gaucho Group vs. Morningstar Unconstrained Allocation |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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