Correlation Between Belpointe PREP and National Healthcare

Can any of the company-specific risk be diversified away by investing in both Belpointe PREP and National Healthcare 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 National Healthcare 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 National Healthcare Properties,, you can compare the effects of market volatilities on Belpointe PREP and National Healthcare 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 National Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Belpointe PREP and National Healthcare.

Diversification Opportunities for Belpointe PREP and National Healthcare

0.02

Correlation Coefficient

Belpointe PREP  National Healthcare

Significant diversification

The 3 months correlation between Belpointe and National is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Belpointe PREP LLC and National Healthcare Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Healthcare 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 National Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Healthcare has no effect on the direction of Belpointe PREP i.e., Belpointe PREP and National Healthcare go up and down completely randomly.

Pair Corralation between Belpointe PREP and National Healthcare

Allowing for the 90-day total investment horizon Belpointe PREP LLC is expected to under-perform the National Healthcare. In addition to that, Belpointe PREP is 2.22 times more volatile than National Healthcare Properties,. It trades about -0.09 of its total potential returns per unit of risk. National Healthcare Properties, is currently generating about 0.05 per unit of volatility. If you would invest  1,377  in National Healthcare Properties, on December 20, 2024 and sell it today you would earn a total of  51.00  from holding National Healthcare Properties, or generate 3.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Belpointe PREP LLC  vs.  National Healthcare Properties

Belpointe PREP LLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Belpointe PREP LLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

National Healthcare

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in National Healthcare Properties, are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, National Healthcare is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Belpointe PREP and National Healthcare

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

The idea behind Belpointe PREP LLC and National Healthcare Properties, 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..