Correlation Analysis Between SHOPIFY INC and Shanghai

This module allows you to analyze existing cross correlation between SHOPIFY INC and Shanghai. You can compare the effects of market volatilities on SHOPIFY INC and Shanghai 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 SHOPIFY INC with a short position of Shanghai. See also your portfolio center. Please also check ongoing floating volatility patterns of SHOPIFY INC and Shanghai.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

 Predicted Return Density 
      Returns 

SHOPIFY INC  vs.  Shanghai

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, SHOPIFY INC is expected to under-perform the Shanghai. In addition to that, SHOPIFY INC is 5.27 times more volatile than Shanghai. It trades about -0.02 of its total potential returns per unit of risk. Shanghai is currently generating about 0.05 per unit of volatility. If you would invest  282,382  in Shanghai on October 14, 2019 and sell it today you would earn a total of  8,142  from holding Shanghai or generate 2.88% return on investment over 30 days.

Pair Corralation between SHOPIFY INC and Shanghai

-0.47
Time Period3 Months [change]
DirectionNegative 
StrengthVery Weak
Accuracy93.55%
ValuesDaily Returns

Diversification Opportunities for SHOPIFY INC and Shanghai

SHOPIFY INC diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding SHOPIFY INC and Shanghai in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Shanghai and SHOPIFY INC 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 SHOPIFY INC are associated (or correlated) with Shanghai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai has no effect on the direction of SHOPIFY INC i.e. SHOPIFY INC and Shanghai go up and down completely randomly.
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See also your portfolio center. Please also try Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.


 
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