Shopify Stock Alpha and Beta Analysis
| SHOP Stock | CAD 161.84 3.57 2.26% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Shopify. It also helps investors analyze the systematic and unsystematic risks associated with investing in Shopify over a specified time horizon. Remember, high Shopify's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to Shopify's market risk premium analysis include:
Beta 1.68 | Alpha 0.54 | Risk 3.39 | Sharpe Ratio 0.25 | Expected Return 0.85 |
Shopify Quarterly Cash And Equivalents |
|
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
Shopify |
Shopify Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Shopify market risk premium is the additional return an investor will receive from holding Shopify long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Shopify. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Shopify's performance over market.| α | 0.54 | β | 1.68 |
Shopify expected buy-and-hold returns
Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Shopify's Buy-and-hold return. Our buy-and-hold chart shows how Shopify performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Shopify Market Price Analysis
Market price analysis indicators help investors to evaluate how Shopify stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Shopify shares will generate the highest return on investment. By understating and applying Shopify stock market price indicators, traders can identify Shopify position entry and exit signals to maximize returns.
Shopify Return and Market Media
The median price of Shopify for the period between Sat, Aug 31, 2024 and Fri, Nov 29, 2024 is 110.26 with a coefficient of variation of 16.96. The daily time series for the period is distributed with a sample standard deviation of 19.69, arithmetic mean of 116.08, and mean deviation of 15.0. The Stock received some media coverage during the period. Price Growth (%) |
| Timeline |
1 | Why Shopify Stock Has Analysts Buzzing About Big Gains - Nasdaq | 09/20/2024 |
2 | Shopify Inc. A Play on the Growing E-commerce Market - Yahoo Finance | 09/24/2024 |
3 | Analyst Downgrade Hits Shopify Amid Valuation Concerns - Yahoo Finance | 11/22/2024 |
About Shopify Beta and Alpha
For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Shopify or other stocks. Alpha measures the amount that position in Shopify has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
| 2021 | 2022 | 2023 | 2024 (projected) | Days Sales Outstanding | 54.39 | 57.68 | 59.71 | 32.25 | PTB Ratio | 15.42 | 5.33 | 11.01 | 15.57 |
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Shopify in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Shopify's short interest history, or implied volatility extrapolated from Shopify options trading.
Build Portfolio with Shopify
Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.Build Diversified Portfolios
Align your risk with return expectations
Check out Shopify Backtesting, Shopify Valuation, Shopify Correlation, Shopify Hype Analysis, Shopify Volatility, Shopify History and analyze Shopify Performance. To learn how to invest in Shopify Stock, please use our How to Invest in Shopify guide.You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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.