Correlation Between Bayport International and Belpointe PREP

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

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

Diversification Opportunities for Bayport International and Belpointe PREP

0.25

Correlation Coefficient

Bayport International  Belpointe PREP

Modest diversification

The 3 months correlation between Bayport and Belpointe is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Bayport International Holdings 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 Bayport International 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 Bayport International Holdings 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 Bayport International i.e., Bayport International and Belpointe PREP go up and down completely randomly.

Pair Corralation between Bayport International and Belpointe PREP

Given the investment horizon of 90 days Bayport International Holdings is expected to generate 162.42 times more return on investment than Belpointe PREP. However, Bayport International is 162.42 times more volatile than Belpointe PREP LLC. It trades about 0.24 of its potential returns per unit of risk. Belpointe PREP LLC is currently generating about 0.04 per unit of risk. If you would invest  0.01  in Bayport International Holdings on May 6, 2025 and sell it today you would earn a total of  0.00  from holding Bayport International Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Bayport International Holdings  vs.  Belpointe PREP LLC

Bayport International

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bayport International Holdings are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Bayport International reported solid returns over the last few months and may actually be approaching a breakup point.

Belpointe PREP LLC

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Belpointe PREP LLC are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Belpointe PREP is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bayport International and Belpointe PREP

The main advantage of trading using opposite Bayport International and Belpointe PREP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bayport International 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 Bayport International Holdings 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.