Correlation Between Shopify and Seluxit AS
Can any of the company-specific risk be diversified away by investing in both Shopify and Seluxit AS at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Shopify and Seluxit AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shopify and Seluxit AS, you can compare the effects of market volatilities on Shopify and Seluxit AS 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 Seluxit AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shopify and Seluxit AS.
Diversification Opportunities for Shopify and Seluxit AS
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shopify and Seluxit is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Shopify and Seluxit AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seluxit AS 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 Seluxit AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seluxit AS has no effect on the direction of Shopify i.e., Shopify and Seluxit AS go up and down completely randomly.
Pair Corralation between Shopify and Seluxit AS
Given the investment horizon of 90 days Shopify is expected to under-perform the Seluxit AS. But the stock apears to be less risky and, when comparing its historical volatility, Shopify is 3.98 times less risky than Seluxit AS. The stock trades about -0.2 of its potential returns per unit of risk. The Seluxit AS is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 340.00 in Seluxit AS on January 25, 2024 and sell it today you would earn a total of 10.00 from holding Seluxit AS or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Shopify vs. Seluxit AS
Performance |
| Timeline |
| Shopify |
| Seluxit AS |
Shopify and Seluxit AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shopify and Seluxit AS
The main advantage of trading using opposite Shopify and Seluxit AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shopify position performs unexpectedly, Seluxit AS can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Seluxit AS will offset losses from the drop in Seluxit AS's long position.The idea behind Shopify and Seluxit AS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Seluxit AS vs. Spar Nord Bank | Seluxit AS vs. Vestjysk Bank AS | Seluxit AS vs. Djurslands Bank | Seluxit AS vs. PARKEN Sport Entertainment |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |