Correlation Between Belpointe PREP and Modiv

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

Diversification Opportunities for Belpointe PREP and Modiv

-0.48

Correlation Coefficient

Belpointe PREP  Modiv

Very good diversification

The 3 months correlation between Belpointe and Modiv is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Belpointe PREP LLC and Modiv Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Modiv Inc 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 Modiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Modiv Inc has no effect on the direction of Belpointe PREP i.e., Belpointe PREP and Modiv go up and down completely randomly.

Pair Corralation between Belpointe PREP and Modiv

Allowing for the 90-day total investment horizon Belpointe PREP LLC is expected to generate 1.18 times more return on investment than Modiv. However, Belpointe PREP is 1.18 times more volatile than Modiv Inc. It trades about 0.04 of its potential returns per unit of risk. Modiv Inc is currently generating about 0.02 per unit of risk. If you would invest  6,183  in Belpointe PREP LLC on May 6, 2025 and sell it today you would earn a total of  192.00  from holding Belpointe PREP LLC or generate 3.11% 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.  Modiv Inc

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.

Modiv Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Modiv Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable fundamental indicators, Modiv is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Belpointe PREP and Modiv

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

The idea behind Belpointe PREP LLC and Modiv Inc 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.