Correlation Between Shopify and Bang Olufsen

By analyzing existing cross correlation between Shopify and Bang Olufsen Holding you can compare the effects of market volatilities on Shopify and Bang Olufsen 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 with a short position of Bang Olufsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shopify and Bang Olufsen.

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Can any of the company-specific risk be diversified away by investing in both Shopify and Bang Olufsen at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing Shopify and Bang Olufsen into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for Shopify and Bang Olufsen

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Pay attention - limited upside

The 3 months correlation between Shopify and Bang Olufsen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shopify Inc and Bang Olufsen Holding AS in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bang Olufsen Holding and Shopify 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 are associated (or correlated) with Bang Olufsen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bang Olufsen Holding has no effect on the direction of Shopify i.e. Shopify and Bang Olufsen go up and down completely randomly.

Pair Corralation between Shopify and Bang Olufsen

If you would invest  48,840  in Shopify on April 29, 2020 and sell it today you would earn a total of  25,611  from holding Shopify or generate 52.44% return on investment over 30 days.
Time Period3 Months [change]
ValuesDaily Returns

Shopify Inc  vs.  Bang Olufsen Holding AS

 Performance (%) 

Shopify Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Shopify are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days. Inspite very unsteady forward-looking indicators, Shopify displayed solid returns over the last few months and may actually be approaching a breakup point.
Bang Olufsen Holding 

Bang Olufsen Risk-Adjusted Performance

Over the last 30 days Bang Olufsen Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Allthough quite persistent forward indicators, Bang Olufsen is not utilizing all of its potentials. The existing stock price mess, may contribute to short term losses for the partners.

Shopify and Bang Olufsen Volatility Contrast

Check out your portfolio center. Please also try Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

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