| SQ3 Stock | | | EUR 79.03 1.91 2.36% |
The current 90-days correlation between Square Inc and Shopify is 0.45 (i.e., Very weak diversification). The correlation of Square is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Square Correlation With Market
Very weak diversification
The correlation between Square Inc and DJI is 0.46 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Square Inc and DJI in the same portfolio, assuming nothing else is changed.
The ability to find closely correlated positions to Square could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Square when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Square - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Square Inc to buy it.
Moving together with Square Stock
Moving against Square Stock
Related Correlations Analysis
Risk-Adjusted IndicatorsThere is a big difference between Square Stock performing well and Square Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Square's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.
Be your own money manager
Our tools can tell you how much better you can do entering a position in Square without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.
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Square Corporate Management
Elected by the shareholders, the Square's board of directors comprises two types of representatives: Square inside directors who are chosen from within the company, and outside directors, selected externally and held independent of Square. The board's role is to monitor Square's management team and ensure that shareholders' interests are well served. Square's inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, Square's outside directors are responsible for providing unbiased perspectives on the board's policies.