NET vs. SHOP
NET (Cloudflare, Inc.) and SHOP (Shopify Inc.) are both stocks. Both are in the Technology sector — NET in Software - Infrastructure, SHOP in Software - Application. Over the past 5 years, NET returned 22.42%/yr vs -1.84%/yr for SHOP. A 0.57 correlation means they provide meaningful diversification when combined.
Performance
NET vs. SHOP - Performance Comparison
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Returns By Period
In the year-to-date period, NET achieves a 25.69% return, which is significantly higher than SHOP's -31.18% return.
NET
- 1D
- -0.93%
- 1M
- 26.34%
- YTD
- 25.69%
- 6M
- 20.37%
- 1Y
- 37.91%
- 3Y*
- 57.17%
- 5Y*
- 22.42%
- 10Y*
- —
SHOP
- 1D
- 1.13%
- 1M
- 0.34%
- YTD
- -31.18%
- 6M
- -30.07%
- 1Y
- -0.57%
- 3Y*
- 21.77%
- 5Y*
- -1.84%
- 10Y*
- 44.31%
NET vs. SHOP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|---|
NET Cloudflare, Inc. | 25.69% | 83.09% | 29.33% | 84.16% | -65.62% | 73.05% | 345.43% | -5.22% |
SHOP Shopify Inc. | -31.18% | 51.39% | 36.50% | 124.43% | -74.80% | 21.68% | 184.71% | 17.52% |
Correlation
The correlation between NET and SHOP is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.44 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.53 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.61 |
Correlation (All Time) Calculated using the full available price history since Sep 16, 2019 | 0.57 |
The correlation between NET and SHOP shifts across timeframes, from 0.44 (1 year) to 0.61 (5 years), reflecting how their relationship changes across market environments.
Fundamentals
NET:
$87.38B
SHOP:
$144.39B
NET:
-$0.25
SHOP:
$1.02
NET:
37.07
SHOP:
15.75
NET:
57.23
SHOP:
11.55
NET:
$2.33B
SHOP:
$9.20B
NET:
$1.71B
SHOP:
$5.93B
NET:
$168.53M
SHOP:
$1.60B
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Return for Risk
NET vs. SHOP — Risk / Return Rank
NET
SHOP
NET vs. SHOP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Cloudflare, Inc. (NET) and Shopify Inc. (SHOP). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| NET | SHOP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.65 | ||
| Sortino ratioReturn per unit of downside risk | +0.77 | ||
| Omega ratioGain probability vs. loss probability | 1.17 | 1.05 | +0.12 |
| Calmar ratioReturn relative to maximum drawdown | 1.04 | -0.01 | +1.05 |
| Martin ratioReturn relative to average drawdown | 2.24 | -0.03 | +2.27 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| NET | SHOP | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.64 | -0.01 | +0.65 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.33 | -0.03 | +0.36 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.75 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.71 | 0.69 | +0.02 |
Drawdowns
NET vs. SHOP - Drawdown Comparison
The maximum NET drawdown since its inception was -82.58%, roughly equal to the maximum SHOP drawdown of -84.82%. Use the drawdown chart below to compare losses from any high point for NET and SHOP.
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Drawdown Indicators
| NET | SHOP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -82.58% | -84.82% | +2.24% |
Max Drawdown (1Y)Largest decline over 1 year | -36.76% | -46.71% | +9.95% |
Max Drawdown (3Y)Largest decline over 3 years | -45.00% | -46.71% | +1.71% |
Max Drawdown (5Y)Largest decline over 5 years | -82.58% | -84.82% | +2.24% |
Max Drawdown (10Y)Largest decline over 10 years | — | -84.82% | — |
Current DrawdownCurrent decline from peak | -9.12% | -38.12% | +29.00% |
Average DrawdownAverage peak-to-trough decline | -37.59% | -28.22% | -9.37% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 16.97% | 21.74% | -4.77% |
Volatility
NET vs. SHOP - Volatility Comparison
Cloudflare, Inc. (NET) has a higher volatility of 33.91% compared to Shopify Inc. (SHOP) at 17.86%. This indicates that NET's price experiences larger fluctuations and is considered to be riskier than SHOP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| NET | SHOP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 33.91% | 17.86% | +16.05% |
Volatility (6M)Calculated over the trailing 6-month period | 53.25% | 43.67% | +9.58% |
Volatility (1Y)Calculated over the trailing 1-year period | 59.59% | 57.27% | +2.32% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 68.44% | 65.57% | +2.87% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 67.78% | 59.09% | +8.69% |
Dividends
NET vs. SHOP - Dividend Comparison
Neither NET nor SHOP has paid dividends to shareholders.
Financials
NET vs. SHOP - Financials Comparison
This section allows you to compare key financial metrics between Cloudflare, Inc. and Shopify Inc.. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
Frequently Asked Questions
NET and SHOP have a correlation of 0.44, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
NET has higher volatility (33.91%) compared to SHOP (17.86%). In terms of maximum drawdown, NET dropped -82.58% vs SHOP's -84.82%.
NET currently has the higher Sharpe Ratio (0.64 vs -0.01), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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