Shopify Correlations

SHOP Stock

USD 94.01 2.58 2.67%

The current 90-days correlation between Shopify and Zoom Video Communications is 0.59 (i.e., Very weak diversification). The correlation of Shopify is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Shopify Correlation With Market

Very weak diversification

The correlation between Shopify and DJI is 0.48 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Shopify and DJI in the same portfolio, assuming nothing else is changed.

Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Shopify. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons.

To learn how to invest in Shopify Stock, please use our How to Invest in Shopify guide.

Moving together with Shopify Stock

0.91	DT	Dynatrace Holdings LLC	Pair Corr
0.81	DV	DoubleVerify Holdings	Pair Corr
0.65	PD	Pagerduty Tech Boost	Pair Corr
0.73	ZM	Zoom Video Communications	Pair Corr
0.7	DSGX	Descartes Systems	Pair Corr
0.9	DUOL	Duolingo	Pair Corr
0.72	VTEX	VTEX	Pair Corr
0.83	EGHT	8x8 Common Stock	Pair Corr
0.66	WDAY	Workday	Pair Corr
0.85	ESTC	Elastic NV	Pair Corr
0.84	APP	Applovin Corp	Pair Corr

Moving against Shopify Stock

0.49

Quhuo

Pair Corr

Related Correlations Analysis

	ZM	AI	CRM	WDAY	SNOW	INTU	DDOG	NOW	U
ZM		0.77	0.87	0.68	0.56	0.24	0.83	0.7	-0.05	ZM
AI	0.77		0.91	0.64	0.24	0.62	0.95	0.88	0.11	AI
CRM	0.87	0.91		0.7	0.43	0.5	0.95	0.93	0.08	CRM
WDAY	0.68	0.64	0.7		0.49	0.44	0.64	0.57	0.31	WDAY
SNOW	0.56	0.24	0.43	0.49		-0.3	0.35	0.29	-0.01	SNOW
INTU	0.24	0.62	0.5	0.44	-0.3		0.56	0.58	0.29	INTU
DDOG	0.83	0.95	0.95	0.64	0.35	0.56		0.92	0.01	DDOG
NOW	0.7	0.88	0.93	0.57	0.29	0.58	0.92		0.12	NOW
U	-0.05	0.11	0.08	0.31	-0.01	0.29	0.01	0.12		U
	ZM	AI	CRM	WDAY	SNOW	INTU	DDOG	NOW	U

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

DDOG	+ 0.95	AI
DDOG	+ 0.95	CRM
NOW	+ 0.93	CRM
NOW	+ 0.92	DDOG
CRM	+ 0.91	AI
NOW	+ 0.88	AI

High negative correlations

INTU	- 0.3	SNOW
U	- 0.05	ZM
U	- 0.01	SNOW

Risk-Adjusted Indicators

There is a big difference between Shopify Stock performing well and Shopify Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Shopify's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Treynor Ratio	Potential Upside	Value @Risk	Maximum Drawdown
ZM	1.39	(0.13)	(0.29)	2.54	(3.30)	16.58
AI	3.31	(0.78)	(0.74)	5.97	(8.51)	19.50
CRM	1.42	(0.23)	(0.30)	2.72	(3.81)	8.88
WDAY	1.63	(0.08)	(0.18)	2.93	(3.27)	10.21
SNOW	2.16	(0.07)	(0.15)	3.60	(4.81)	19.02
INTU	1.50	(0.04)	(0.16)	3.01	(2.35)	17.47
DDOG	1.84	(0.57)	(0.77)	2.66	(4.28)	15.08
NOW	1.79	(0.29)	(0.32)	2.61	(4.82)	14.05
U	3.56	(0.14)	(0.22)	6.69	(8.82)	41.49

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