Shopify (Brazil) Market Value
| S2HO34 Stock | BRL 4.62 0.07 1.54% |
| Symbol | Shopify |
Shopify 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Shopify's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Shopify.
| 12/18/2024 |
| 03/18/2025 |
If you would invest 0.00 in Shopify on December 18, 2024 and sell it all today you would earn a total of 0.00 from holding Shopify or generate 0.0% return on investment in Shopify over 90 days. Shopify is related to or competes with Electronic Arts, Align Technology, T Mobile, Seagate Technology, and Micron Technology. Shopify Inc., a commerce company, provides a commerce platform and services in Canada, the United States, the United Kin... More
Shopify Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Shopify's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Shopify upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.06) | |||
| Maximum Drawdown | 15.36 | |||
| Value At Risk | (5.37) | |||
| Potential Upside | 5.33 |
Shopify Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Shopify's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Shopify's standard deviation. In reality, there are many statistical measures that can use Shopify historical prices to predict the future Shopify's volatility.| Risk Adjusted Performance | (0.07) | |||
| Jensen Alpha | (0.25) | |||
| Total Risk Alpha | 0.1076 | |||
| Treynor Ratio | (0.63) |
Shopify Backtested Returns
Shopify owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.1, which indicates the firm had a -0.1 % return per unit of risk over the last 3 months. Shopify exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Shopify's Risk Adjusted Performance of (0.07), variance of 10.66, and Coefficient Of Variation of (1,121) to confirm the risk estimate we provide. The entity has a beta of 0.48, which indicates possible diversification benefits within a given portfolio. As returns on the market increase, Shopify's returns are expected to increase less than the market. However, during the bear market, the loss of holding Shopify is expected to be smaller as well. At this point, Shopify has a negative expected return of -0.33%. Please make sure to validate Shopify's potential upside, kurtosis, and the relationship between the maximum drawdown and skewness , to decide if Shopify performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.10 |
Insignificant predictability
Shopify has insignificant predictability. Overlapping area represents the amount of predictability between Shopify time series from 18th of December 2024 to 1st of February 2025 and 1st of February 2025 to 18th of March 2025. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Shopify price movement. The serial correlation of 0.1 indicates that less than 10.0% of current Shopify price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.1 | |
| Spearman Rank Test | 0.49 | |
| Residual Average | 0.0 | |
| Price Variance | 0.29 |
Shopify lagged returns against current returns
Autocorrelation, which is Shopify stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Shopify's stock expected returns. We can calculate the autocorrelation of Shopify returns to help us make a trade decision. For example, suppose you find that Shopify has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Shopify regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Shopify stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Shopify stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Shopify stock over time.
Current vs Lagged Prices |
| Timeline |
Shopify Lagged Returns
When evaluating Shopify's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Shopify stock have on its future price. Shopify autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Shopify autocorrelation shows the relationship between Shopify stock current value and its past values and can show if there is a momentum factor associated with investing in Shopify.
Regressed Prices |
| Timeline |
Also Currently Popular
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.Additional Information and Resources on Investing in Shopify Stock
When determining whether Shopify is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Shopify Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Shopify Stock. Highlighted below are key reports to facilitate an investment decision about Shopify Stock:Check out Shopify Correlation, Shopify Volatility and Shopify Alpha and Beta module to complement your research on Shopify. For information on how to trade Shopify Stock refer to our How to Trade Shopify Stock guide.You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Shopify technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.